The purpose of this rule is to establish criteria under which a
participant may make trades in the Deferred Compensation Program. The Program
is designed for long-term investment and periodic adjustment of asset
allocation. Restrictions upon trades are necessary to protect participants and
the Program from adverse financial impact attributable to frequent trading.
Frequent trading by some participants can lower returns and increase
transaction costs for all participants. Frequent trading can trigger the
imposition of redemption fees and restrictions by mutual funds within the
Program and may cause the Program to be eliminated as an allowable investor in
an investment fund.
(1) Definitions.
For the purposes of this rule:
(a) "Investment
Option" means an investment alternative made available under ORS
243.421.
(b) "Trade" means a purchase or redemption in
an investment option for the purpose of moving monies between investment
options.
(2)
Restrictions.
(a) The following restrictions
apply to all participants:
(A) A participant
may not make a trade that exceeds $100,000.
(B) A purchase that is attributable to a
trade may not be redeemed from the International Stock Option for a period of
30 days following the date of the trade.
(b) Trades to the Self-Directed Brokerage
Option are subject to subsection (a) of this section and the limitations
established in OAR
459-050-0120.
(3) The Deferred Compensation
Manager, if necessary to comply with trading restrictions imposed by a
participating mutual fund or the Securities and Exchange Commission, may
establish additional temporary trading restrictions.
(4) The Deferred Compensation Manager, in the
event of extraordinary market conditions, may temporarily suspend any or all
trading restrictions established by this rule.
(5) Any action taken by the Deferred
Compensation Manager under sections (3) or (4) of this rule must be presented
to the Board at its next scheduled meeting. The Board may take action as
authorized by ORS 243.401 to
243.507. If the Board does not
act, the action(s) taken by the Deferred Compensation Manager shall expire on
the first business day following the date of the meeting.
(6) The provisions of this rule are not
applicable to trades attributable to the operation of an automatic account
rebalancing function offered by the Program.
(7) The trading restrictions provided in this
rule are not exclusive. The Board may establish additional restrictions or
sanctions as authorized by ORS
243.401 to
243.507.
Notes
Or. Admin. Code
§
459-050-0037
PERS 4-2007, f. 1-23-07,
cert. ef. 5-1-07; PERS 17-2008, f. & cert. ef. 11-26-08; PERS 6-2011, f.
& cert. ef. 8-4-11; PERS 11-2014, f. & cert. ef. 7-25-14;
PERS
3-2022, amend filed 03/28/2022, effective
3/28/2022;
PERS
19-2022, amend filed 12/02/2022, effective
12/2/2022
Statutory/Other Authority: ORS
243.470
Statutes/Other Implemented: ORS
243.401-243.507
