Or. Admin. Code § 459-050-0050 - Eligibility and Enrollment
The purpose of this rule is to establish eligibility criteria and the process for an eligible employee to enroll in the Deferred Compensation Plan established in accordance with section 457 of the Internal Revenue Code and ORS Chapter 243.
(1) Eligible
employee. Eligible employee shall have the same meaning as in OAR
459-050-0001, and as defined by
section 457 of the Internal Revenue
Code.
(2) Application for
enrollment. Subject to the requirements of subsections (a) through (c) of this
section, an eligible employee may enroll to participate in the Deferred
Compensation Program by entering into a written agreement as specified herein
with the plan sponsor. The written agreement must specify that a portion of the
eligible employee's future compensation will be reduced each month, the amount
of the reduction, and that the amount of the reduction will be contributed to
account(s) established for the employee in the Deferred Compensation Plan.
(a) An eligible employee may enter into an
agreement to participate in the plan on or before the first day of employment
or anytime while employed; provided, however, that the requirements of
subsection (b) of this section must be satisfied.
(b) In order for an eligible employee to be
enrolled, an enrollment form, as defined in OAR
459-050-0001 and provided by the
Deferred Compensation Program, must be properly completed and filed with the
Deferred Compensation Program.
(c)
If the form is incomplete, does not comply with plan provisions in any manner
whatsoever, or the Plan is unable to process the application, then staff will
notify the eligible employee within 30 calendar days from the date the
enrollment form is received with the reasons the Deferred Compensation Program
cannot accept the enrollment as submitted.
(3) Deferral effective date. The Deferred
Compensation Program must receive an application for enrollment and be able to
determine that the application is complete and may be processed no later than
the 25th day of any calendar month for salary reduction of future earnings to
begin from compensation paid for services performed during the calendar month
following receipt of enrollment.
(4) Investment option preference(s): Except
for account balances invested in the Self-Directed Brokerage Option as provided
under OAR 459-050-0120, Plan participants
may only invest their account balances by choosing from investment options
provided by the plan sponsor.
(5)
Disclosure statement. Before the deferral of any part of an eligible employee's
salary, the employee shall be provided information about the investment options
including, but not limited to, the probable income and safety of the moneys
deferred. Statements about the relative risk and returns of investment options
do not represent predictions of how the investments will perform in the future,
but rather provide only a general description of the current investment and how
it has performed in the past. The Deferred Compensation Program does not
provide investment advice, fund analysis or research. Investment options are
not guaranteed nor FDIC insured.
(6) Deferral amount. A participant's salary
shall be reduced each pay period in an amount or percentage specified by the
participant for the purpose of contribution to the participant's account(s) in
the Deferred Compensation Program. The amount of the salary reduction may not
be less than the minimum per month established by the plan sponsor and may not
exceed the maximum applicable allowable contribution to a Deferred Compensation
Plan as defined in section 457(b)(2) of the
Internal Revenue Code.
(a) A new participant
who enrolls after the first pay period in a calendar year may elect to defer
the maximum allowable contribution for the year from future compensation for
the remainder of the year.
(b) The
participant's maximum deferral limit is determined without regard to amounts
rolled over from an eligible retirement plan to the participant's Deferred
Compensation account.
Notes
Statutory/Other Authority: ORS 243.470
Statutes/Other Implemented: ORS 243.401-243.507
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