Or. Admin. Code § 471-070-2460

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

Section 471-070-2460 - Equivalent Plans: Employer Withdrawal

(1) An employer may withdraw from an approved equivalent plan that has been in effect for at least one year by submitting a withdrawal form online, by phone, or in another method prescribed by the department.

(2) The employer must provide notice to the department by submitting a withdrawal form at least 30 calendar days prior to the effective date of withdrawal. The effective date of the withdrawal is the later of one of the following dates:

(a) A date that is at least 30 calendar days after the date the withdrawal form is sent to the department and that is the last day of the immediately following calendar quarter; or

(b) The date that the equivalent plan has been in effect for one year.

(3) The employer or administrator must provide notice of the withdrawal from an equivalent plan to its employees at least 30 calendar days prior to the effective date of withdrawal. The notice, at a minimum, must include the effective date of the equivalent plan withdrawal and information about the state plan in accordance with ORS 657B.440.

(4) All equivalent plan requirements, including but not limited to those included in OAR 471-070-2220 and the equivalent plan reporting requirements, remain in effect until the effective date of the withdrawal, except as specified in section (5) of this rule.

(5) The employer or administrator must pay or continue to pay benefits under the terms of the equivalent plan to eligible employees who were approved or receiving benefits under the equivalent plan on the effective date of the withdrawal until the total amount of the benefit claim is paid, the duration of leave ends, or the benefit year ends, whichever occurs first. If the employer or administrator does not pay the benefits, the employee may file an appeal with the employer as described in OAR 471-070-2220(13) and then a dispute resolution request with the department as described in OAR 471-070-2400.

(6) Within 30 calendar days after the effective date of the withdrawal of an equivalent plan, the employer must send to the department all reporting requirement information on benefit claims paid, amounts of contributions collected or owing, and administrative expenses incurred as specified in OAR 471-070-2230 between the last report provided to the department under the equivalent plan reporting requirements and the date of the withdrawal.

Example: XYZ Partnership's equivalent plan became effective July 1, 2023. On January 31, 2024, XYZ Partnership provided the aggregate equivalent plan information from July 1, 2023, to December 31, 2023. XYZ Partnership requested a withdrawal from the equivalent plan with an effective date of November 1, 2024, as the partnership is no longer in business. By December 1, 2024, XYZ Partnership must send the aggregate equivalent plan information from January 1, 2024, to October 31, 2024.

(7) Once the department receives the report specified in section (6) of this rule, the department will provide an invoice of the contribution amounts due, if any. The contribution amount due is calculated based on any contributions withheld from employee's wages that remain in the possession of the employer upon the effective date of the withdrawal, minus an amount equal to the amount of any benefits due to be paid as required under section (5) of this rule and any anticipated administrative expenses. Once all required benefits are paid under section (5) of this rule, the employer must immediately send to the department the final report on any additional benefit claims paid or administrative expenses incurred after the date of the last report provided under section (6) of this rule. Once the department receives the report, the department will provide an invoice for any additional contribution amounts due. Any remaining contribution amounts due are deposited into the PFMLI Trust Fund.

(a) Any contributions become due and payable on the effective date of the withdrawal.

(b) Interest on the amount due from the employer shall accrue from the date of the invoice(s) until paid to the department, in accordance with ORS 657B.320(3).

(8) Upon the effective date of the withdrawal of an equivalent plan, the employer must begin paying employee and employer contributions, if required, in accordance with ORS 657B.150 and other applicable statutes and rules.

Or. Admin. Code § 471-070-2460

ED 8-2022, adopt filed 04/21/2022, effective 4/21/2022; ED 3-2023, amend filed 07/31/2023, effective 8/1/2023

Publications: Contact the Oregon Employment Department for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule.

Statutory/Other Authority: ORS 657B.340 & ORS 657B.240

Statutes/Other Implemented: ORS 657B.240