Or. Admin. Code § 459-007-0025 - Crediting Earnings to a Member Lump Sum Payment
(Y - X)(R/T) + (Z - Y), where:
R = The number of days from the date of payment through the last day of the month the payment is received;
T = The total number of days in the month the payment is received;
X = The year-to-date calculation applicable to the member's regular account as of the first of the month of the date of payment;
Y = The year-to-date calculation as of the first of the month following the date of payment; and
Z = The year-to-date calculation as of the member's effective retirement date if such date occurs during the calendar year the payment is received, or, in all other cases, the annual rate applicable to the member's regular account as of December 31 of the year the payment is received.
Example: A member lump sum payment is received by PERS on May 12, 2002, from a Tier One member whose effective retirement date is August 1, 2003. The Tier One regular account year-to-date calculation as of May 1, 2002, is 1.0263, the Tier One year-to-date calculation as of June 1, 2002, is 1.0330, and the Tier One regular account annual rate for 2002 is 1.0800. Therefore, R = 20, T = 31, X = 1.0263, Y = 1.0330, Z = 1.0800 and the earnings crediting rate is:
(1.0330 - 1.0263)(20/31) + (1.0800 - 1.0330)
= (0.0067)(0.6452) + .0470
= 0.0043 + .0470
= 0.0513
Notes
Stat. Auth: ORS 238.650
Stats. Implemented: ORS 238
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