Or. Admin. Code § 459-080-0020 - Withdrawal of Individual Accounts
(1) Definitions. For the purposes of this
rule:
(a) "Bona fide separation" means a
member has been absent from employment with all participating employers, and
employers in a controlled group with a participating employer, for at least one
full calendar month following the month of separation.
(b) "Controlled group" means a group of
employers treated as a single employer for purposes of maintaining qualified
status under federal law.
(c)
"Effective date of withdrawal" has the same meaning as given the term in OAR
459-005-0001(10).
(d) "Inactive
member" has the same meaning given the term in ORS
238A.005(8).
(e) "Individual account program" has the same
meaning given the term in ORS
238A.005(9).
(f) "Individual accounts" means the employee
account, Employee Pension Stability Account, rollover account, and employer
account of a member of the Individual Account Program (IAP) to the extent the
member is vested in those accounts under ORS
238A.320.
(2) An inactive member may withdraw the
individual accounts under ORS
238A.375 if:
(a) The member is not employed with any
participating employers or any employers in a controlled group with a
participating employer;
(b) The
member has a bona fide separation;
(c) The member has not reached earliest
retirement age as of the effective date of withdrawal;
(d) The member files with PERS a written
request for withdrawal on a form acceptable to PERS; and
(e) The member complies with the requirements
of ORS
238A.375(5).
(3) A member may revoke a request for
withdrawal of the individual accounts if PERS receives the member's written
revocation of the request before the earlier of:
(a) The date of distribution; or
(b) The date PERS receives a valid court
order requiring PERS to pay the distribution to someone other than the
withdrawing member.
(4) A
member who withdraws the individual accounts terminates membership in the IAP
as of the effective date of withdrawal.
(5) An employer account not included in the
withdrawn individual accounts by reason of the member's failure to vest in the
employer account is permanently forfeited as of the date of
distribution.
(6) A member who
withdraws the individual accounts forfeits any service performed by the member
before the separation described in subsection (2)(a) of this rule. Forfeited
service will not be considered for the purpose of vesting in an employer
account if subsequently employed with a participating employer.
(7) If a former member who has withdrawn the
individual accounts returns to employment with a participating employer or an
employer in a controlled group with a participating employer before the time
required for a bona fide separation, the withdrawal is cancelled and membership
is restored. The member must repay to PERS in a single payment the total amount
of all payments attributable to the withdrawal within 30 days following the
effective date of the employment. Upon receipt by PERS of repayment under this
section, account(s) forfeited under section (5) of this rule and service
forfeited under section (6) of this rule are restored effective the date of
distribution. The repayment amount received will be credited pro rata to the
accounts from which the withdrawal amount was derived.
(8) If the member fails to repay as provided
in section (7) of this rule, PERS shall take all reasonable steps to recover
the repayment amount due, including any interest, costs, or penalties assessed
by PERS, under the provisions of ORS
238.715 and OAR 459-005-0610. Upon receipt by PERS of repayment under this section,
account(s) forfeited under section (5) of this rule, and service forfeited
under section (6) of this rule are restored effective the first day of the
month following the date of repayment. The repayment amount received will be
credited pro rata to the accounts from which the withdrawal amount was derived
effective the first day of the month following the date of repayment.
Notes
Statutory/Other Authority: ORS 238A.450
Statutes/Other Implemented: ORS 238A.375 & OL 2007 Ch. 52
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