Or. Admin. Code § 459-007-0300 - Crediting Earnings to Police Officer and Firefighter Unit Accounts in the Fund

(1) Definitions. For the purpose of this rule:
(a) "Effective date of unit benefits" means the date the member elects to begin receiving unit benefits.
(b) "End date" means the date after which earnings are no longer credited to the unit account and is the later of:
(A) The first of the calendar month following the date the member reaches age 65; or
(B) The first of the calendar month following the date the member separates from the service of all participating employers.
(c) "Unit" means a unit of additional benefits purchased under ORS 238.440.
(d) "Unit account" means the member's account in the Fund that is used to purchase unit benefits, which includes actuarially determined member additional contributions (ORS 238.440(1)) and earnings.
(e) "Unit benefits" means the increased benefits a police officer or firefighter may purchase under ORS 238.440.
(2) Crediting annual earnings. Annual earnings will be credited to the unit account as follows:
(a) For a Tier One member, in the same manner as provided for Tier One member regular accounts in OAR 459-007-0005.
(b) For a Tier Two member, in the same manner as provided for Tier Two member regular accounts in OAR 459-007-0005.
(3) Crediting earnings to a withdrawal. If the unit account is withdrawn under ORS 238.440(4), earnings will be credited to the unit account as follows:
(a) For a Tier One member, in the same manner as provided in OAR 459-007-0040(1).
(b) For a Tier Two member, in the same manner as provided in OAR 459-007-0220(1).
(4) Crediting earnings to unit account upon refund under ORS 238.440(6). If a member is no longer eligible to purchase police officer and firefighter units under 238.440(6), distribution interest shall be credited to the unit account from the first of the month following the date the member has been absent from P&F qualified employment for 5 consecutive years to the date of distribution based on the average annualized rate.
(5) Crediting earnings on a lump sum purchase.
(a) If a member makes a lump sum purchase under ORS 238.440(2) and elects an effective date of unit benefits that is the same date as the member's effective retirement date, earnings will not be credited on the lump sum purchase.
(b) If a member makes a lump sum purchase under ORS 238.440(2) and elects an effective date of unit benefits that is later than the member's effective retirement date, earnings on the member's lump sum purchase from the date of receipt to the effective date of unit benefits shall be credited to the unit account as follows:
(A) Earnings from the date of payment to December 31 of the calendar year of the date of payment, or the member's effective date of unit benefits, whichever occurs first, shall be credited to the member's lump sum payment based on the rate derived from the formula provided in 459-007-0025(3).
(B) Earnings for subsequent calendar years shall be credited as set forth in section (6) of this rule.
(6) Crediting earnings to effective date of unit benefits. When a retired member elects to begin receiving unit benefits under ORS 238.440(1) or (2), earnings will be credited to the member's unit account as of the effective date of unit benefits as follows:
(a) For a Tier One member, in the same manner as provided in the version of OAR 459-007-0070(1) in effect on the effective date of unit benefits.
(b) For a Tier Two member, in the same manner as provided in OAR 459-007-0250(1).
(7) If, after the crediting of earnings under section (5) of this rule, the amount in the unit account is greater than the actuarially determined amount required at the time of retirement to purchase the number of units elected, the difference will be returned to the member in a lump sum. The lump sum shall be credited with earnings from the effective date of unit benefits to the date of distribution based on the average annualized rate.
(8) Crediting earnings to end date. If a member's effective date of unit benefits does not occur before the end date, earnings from the last annual earnings crediting to the end date shall be credited to the unit account as follows:
(a) If earnings for the calendar year before the end date have not yet been credited to the member's unit account, earnings shall be credited for that year based on the latest year-to-date calculation available for that year.
(b) Earnings for the calendar year of the end date shall be credited to the unit account based on the latest year-to-date calculation as of the end date.
(9) Crediting earnings in the event of death before the effective date of unit benefits. Upon the death of a member before the member's effective date of unit benefits, earnings shall be credited to the unit account:
(a) For a Tier One member, in the same manner as provided in OAR 459-007-0050 for Tier One regular accounts.
(b) For a Tier Two member, in the same manner as provided in OAR 459-007-0230 for Tier Two regular accounts.
(10) Crediting earnings in the event of death after the effective date of unit benefits. Upon the death of a member who is receiving unit benefits, the actuarial present value of the remaining unit benefits is paid to the member's beneficiary in a lump sum. No earnings shall be credited to the unit account.

Notes

Or. Admin. Code § 459-007-0300
PERS 8-2000, f. & cert. ef. 12-5-00; PERS 8-2004, f. & cert. ef. 4-15-04; PERS 1-2007, f. & cert. ef. 1-23-07; PERS 3-2009, f. & cert. ef. 4-6-09

Example & Formula referenced are available from the agency.

Stat. Auth: ORS 238.650

Stats. Implemented: ORS 238.440

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