Or. Admin. Code § 471-070-2280

Current through Register Vol. 63, No. 10, October 1, 2024

Section 471-070-2280 - Equivalent Plans: Solvency Documentation

(1) For the purposes of ORS 657B.210, if an employer has an employer administered equivalent plan, the employer must furnish to the department with the initial application, reapproval, or substantive amendment, proof of solvency by providing proof of sufficient assets, or a bond or an irrevocable letter of credit with the department named as the payee or beneficiary, issued by an insured institution, as defined in ORS 706.008.

(2) Proof of solvency must be in an amount equal to the contributions due or estimated to be due from the employee and employer for a period of three calendar quarters.

Example: PQR employer is applying for an employer administered equivalent plan. PQR's estimated Paid Family and Medical Leave Insurance subject wages for three calendar quarters is $750,000 ($200,000 the first quarter, $300,000 the second quarter, and $250,000 the third quarter). Assuming a total contribution rate of one percent, PQR's estimated employee and employer contributions is $7,500 ($750,000 subject wages multiplied by one percent). PQR must attach proof of solvency in the amount of $7,500 to the application.

Or. Admin. Code § 471-070-2280

ED 8-2022, adopt filed 04/21/2022, effective 4/21/2022

Statutory/Other Authority: ORS 657B.340

Statutes/Other Implemented: ORS 657B.190 & 657B.210