Or. Admin. Code § 459-007-0230 - Crediting Earnings for a Deceased Tier Two Active or Inactive Member
Upon the death of an active or inactive Tier Two member, earnings from the date of death to the date of distribution shall be credited as specified in this rule.
(1)
Definitions. For purposes of this rule:
(a)
"Death benefit amount" means the sum of the member's regular account and
variable account as of the first of the month of the member's death and held by
PERS for the beneficiary or beneficiaries of a deceased member until benefits
are distributed.
(b) "Effective
date of request" means the first of the month in which PERS receives a valid
request for distribution of the death benefit amount.
(2) For members whose date of death is on or
after January 1, 2000, earnings shall be credited to the member's regular
account as follows:
(a) If earnings for the
calendar year before the date of the member's death have not yet been credited,
earnings shall be applied for that year based on the latest year-to-date
calculation for that year.
(b)
Earnings for the calendar year of the member's death shall be credited based on
the latest year-to-date calculation for that year as of the first of the month
of the member's death.
(3) If the member was participating in the
Variable Annuity Account, earnings shall be credited to the member's variable
account as follows:
(a) If earnings for the
calendar year before the member's death have not been credited, earnings for
that year shall be based on the latest year-to-date calculation available for
that year.
(b) Earnings for the
calendar year of the member's death shall be applied based on the latest
year-to-date calculation for that year as of the first of the month of the
member's death.
(4)
After earnings have been credited in accordance with sections (2) and (3) of
this rule, the value of the member's variable account shall be added to the
value of the member's regular account and the sum shall constitute the death
benefit amount as of the first of the month of the member's death.
(5) Earnings on the death benefit amount from
the first of the month of the member's death to the end of that calendar year
shall be credited based on the Tier Two annual rate less the Tier Two latest
year-to-date-calculation as of the first of the month of the member's
death.
(6) Earnings on the death
benefit amount for calendar years following the year of the member's death and
before the year funds are requested shall be credited in accordance with OAR
459-007-0005 for Tier Two regular accounts.
(7) Earnings on the death benefit amount from
January 1 of the year funds are requested to the effective date of request
shall be based on the Tier Two latest year-to-date calculation.
(8) Earnings from the effective date of
request to the date of distribution shall be based on the average annualized
rate prorated for that period.
(9)
If the member's date of death is before January 1, 2000, earnings shall be
credited in accordance with the rules applicable to Tier Two members in effect
up to January 1, 2000. As of January 1, 2000, the deceased member's account
shall be converted to a death benefit amount. Earnings on the death benefit
amount from January 1, 2000 to the date of distribution shall be credited in
accordance with sections (5) through (8) of this rule.
(10) If a beneficiary elects a monthly
payment, earnings shall be credited to the death benefit amount from the first
of the month of the member's date of death to the effective date of the monthly
payment, which is the first of the month following the member's date of death,
as follows:
(a) Subtract the latest Tier Two
regular account year-to-date calculation available as of the first of the month
of the member's death from the latest Tier Two regular account year-to-date
calculation available as of the effective date of the monthly payment.
(b) Multiply the beneficiary's
death benefit amount by the Tier Two rate calculated in subsection (a) of this
rule.
(11) The provisions
of this rule apply to requests for distribution received on or after March 15,
2005.
Notes
Stat. Auth.: ORS 238.650
Stats. Implemented: ORS 238.390, 238.430 & 238.435
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