Or. Admin. Code § 459-005-0525 - Ceiling on Compensation for Purposes of Contributions and Benefits
(1) This administrative rule shall be
construed consistently with the requirements of the Internal Revenue Code (IRC)
Section 401(a)(17) relating to the limitation on annual compensation allowable
for determining contribution and benefits under ORS Chapters 238 and
238A.
(2) For purposes of this
rule:
(a) "Annual compensation" means
"salary," as defined in ORS
238.005 and
238.205 with respect to Chapter
238 and in 238A.005 with respect to Chapter 238A paid to the member during a
calendar year or other 12-month period, as specified in this rule.
(b) "Eligible participant" means a person who
first becomes a member of PERS before January 1, 1996.
(c) "Employer" means a "public employer" as
defined in ORS 238.005, for the purposes of
this rule as it applies to Chapter 238. For the purposes of this rule as it
applies to Chapter 238A, an "employer" means a "participating public employer"
as defined in 238A.005.
(d)
"Noneligible participant" means a person who first becomes a member of PERS
after December 31, 1995.
(e)
"Participant" means an active or inactive member of PERS.
(3) For eligible participants, the limit set
forth in IRC Section 401(a)(17) shall not apply
for purposes of determining the amount of employee or employer contributions
that may be paid into PERS, and for purposes of determining benefits due under
ORS Chapters 238 and 238A. The limit on annual compensation for eligible
participants shall be no less than the amount which was allowed to be taken
into account for purposes of determining contributions or benefits under former
ORS 237.001 to
237.315 as in effect on July 1,
1993, for calendar years before 2020. Beginning in 2025, the limit on annual
compensation taken into account for purposes of determining contributions or
benefits under ORS Chapter 238 or 238A for eligible participants shall be
measured on a calendar year basis, and shall not exceed $238,567 per calendar
year.
(4) For noneligible
participants, the annual compensation taken into account for purposes of
determining contributions or benefits under ORS Chapters 238 and 238A shall be
measured on a calendar year basis, and shall not exceed $238,567 per calendar
year beginning in 2025.
(5) A
participant employed by two or more agencies or instrumentalities of a PERS
participating employer in a calendar year, whether concurrently or
consecutively, shall have all compensation paid by the employer combined for
determining the allowable annual compensation under this rule.
(6) PERS participating employers shall
monitor annual compensation and contributions to assure that reports and
remitting are within the limits established by this rule and IRC Section
401(a)(17).
(7) For a participant, Final Average Salary
under ORS 238.005 with respect to Chapter
238 and under 238A.130 with respect to Chapter 238A shall be calculated based
on the amount of compensation that is allowed to be taken into account under
this rule.
(8) With respect to ORS
Chapter 238, creditable service, as defined in 238.005, shall be given for each
month that an active member is paid salary or wages and allowable contributions
have been remitted to PERS, or would be remitted but for the annual
compensation limit in this rule. With respect to Chapter 238A, retirement
credit as determined in 238A.140, shall be given for each month that an active
member is paid salary or wages and allowable contributions have been remitted
to PERS, or would be remitted but for the annual compensation limit in this
rule.
(9) Beginning in 2020, the
limitation on annual compensation under sections (3) and (4) of this rule will
be indexed by cost-of-living adjustments in subsequent years as provided in the
Consumer Price Index for All Urban Consumers, West Region (All Items), as
published by the Bureau of Labor Statistics of the United States Department of
Labor.
Notes
Statutory/Other Authority: ORS 238.630, 238.650, 238A.370 & 238A.450
Statutes/Other Implemented: ORS 238.005 & ORS 238A.005
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(1) This administrative rule shall be construed consistently with the requirements of the Internal Revenue Code (IRC) Section 401(a)(17) relating to the limitation on annual compensation allowable for determining contribution and benefits under ORS Chapters 238 and 238A.
(2) For purposes of this rule:
(a) "Annual compensation" means "salary ," as defined in ORS 238.005 and 238.205 with respect to Chapter 238 and in 238A.005 with respect to Chapter 238A paid to the member during a calendar year or other 12-month period , as specified in this rule.
(b) "Eligible participant" means a person who first becomes a member of PERS before January 1, 1996.
(c) "Employer" means a "public employer" as defined in ORS 238.005, for the purposes of this rule as it applies to Chapter 238. For the purposes of this rule as it applies to Chapter 238A, an "employer" means a "participating public employer" as defined in 238A.005.
(d) "Noneligible participant" means a person who first becomes a member of PERS after December 31, 1995.
(e) "Participant" means an active or inactive member of PERS .
(3) For eligible participants, the limit set forth in IRC Section 401(a)(17) shall not apply for purposes of determining the amount of employee or employer contributions that may be paid into PERS , and for purposes of determining benefits due under ORS Chapters 238 and 238A. The limit on annual compensation for eligible participants shall be no less than the amount which was allowed to be taken into account for purposes of determining contributions or benefits under former ORS 237.001 to 237.315 as in effect on July 1, 1993, for calendar years before 2020. Beginning in 2024, the limit on annual compensation taken into account for purposes of determining contributions or benefits under ORS Chapter 238 or 238A for eligible participants shall be measured on a calendar year basis, and shall not exceed $232,976 per calendar year .
(4) For noneligible participants, the annual compensation taken into account for purposes of determining contributions or benefits under ORS Chapters 238 and 238A shall be measured on a calendar year basis, and shall not exceed $232,976 per calendar year beginning in 2024.
(5) A participant employed by two or more agencies or instrumentalities of a PERS participating employer in a calendar year , whether concurrently or consecutively, shall have all compensation paid by the employer combined for determining the allowable annual compensation under this rule.
(6) PERS participating employers shall monitor annual compensation and contributions to assure that reports and remitting are within the limits established by this rule and IRC Section 401(a)(17).
(7) For a participant, Final Average Salary under ORS 238.005 with respect to Chapter 238 and under 238A.130 with respect to Chapter 238A shall be calculated based on the amount of compensation that is allowed to be taken into account under this rule.
(8) With respect to ORS Chapter 238, creditable service, as defined in 238.005, shall be given for each month that an active member is paid salary or wages and allowable contributions have been remitted to PERS , or would be remitted but for the annual compensation limit in this rule. With respect to Chapter 238A, retirement credit as determined in 238A.140, shall be given for each month that an active member is paid salary or wages and allowable contributions have been remitted to PERS , or would be remitted but for the annual compensation limit in this rule.
(9) Beginning in 2020, the limitation on annual compensation under sections (3) and (4) of this rule will be indexed by cost-of-living adjustments in subsequent years as provided in the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor.
Notes
Statutory/Other Authority: ORS 238.630, 238.650, 238A.370 & 238A.450
Statutes/Other Implemented: ORS 238.005 & ORS 238A.005