Or. Admin. R. 459-005-0540

Current through Register Vol. 63, No. 6, June 1, 2024

Section 459-005-0540 - Permissive Service Credit

(1) General Rule. If a member makes one or more after-tax contributions to PERS to purchase permissive service credit, then all such contributions by the member must satisfy one of the following limitations:

(a) The annual benefit limitation under OAR 459-005-0535, Annual Benefit Limitation, determined by treating the accrued benefit derived from all of the member's contributions to purchase permissive service credit as part of the member's annual benefit; or

(b) The annual addition limitation under OAR 459-005-0545, Annual Addition Limitation, determined by treating all of the member's contributions to purchase permissive service credit annual additions.

(2) Definition of Permissive Service Credit. "Permissive service credit" means service credit that satisfies the requirements in subsection (a) of this section and is not excluded under subsection (b) of this section.

(a) Permissive service credit generally means service credit that:

(A) Is recognized by PERS as the retirement credit for purposes of calculating a member's benefits;

(B) Has not previously been credited to the member; and

(C) Is credited to the member only if the member makes a voluntary additional contribution in an amount calculated under the terms of the plan, which does not exceed the amount necessary to fund the benefit attributable to the purchased service credit.

(b) Notwithstanding subsection (a) of this section, "permissive service credit" does not include:

(A) Previously forfeited service that is reinstated under ORS 238.105 or 238.115;

(B) Periods of military service that are purchased under ORS 238.156; or

(C) Periods of nonqualified service that do not satisfy the requirements in section (3) of this rule.

(3) Nonqualified Service. Nonqualified service purchased by a member shall be treated as permissive service credit only if the member purchases no more than five years of nonqualified service, and the member has at least five years of active membership before purchasing the nonqualified service. For this purpose, "nonqualified service" means any service other than the following:

(a) Military service (other than military service purchased under ORS 238.156);

(b) Service as an employee with one of the following employers, provided that the employee does not receive a retirement benefit from the same service under another plan:

(A) A governmental employer;

(B) A public, private, or sectarian school that provides elementary or secondary education; or

(C) An association of governmental employees.

(4) Retroactive Application. The provisions of this rule shall be applied retroactively to January 1, 1998.

Or. Admin. R. 459-005-0540

PERS 5-1999, f. & cert. ef. 11-15-99

Stat. Auth.: ORS 238.630 & ORS 238.650

Stats. Implemented: ORS 238.005 - ORS 238.715