Or. Admin. Code § 459-080-0250 - IAP Account Installments
(1)
Definitions. For purposes of this rule:
(a)
"Account balance" means the member's employee and employer accounts established
under ORS 238A.350, to the extent the
member is vested in those accounts.
(b) "Anniversary date" means the first day of
the calendar month of the date of distribution of the first installment
payment.
(c) "Date of distribution"
has the same meaning as defined in OAR
459-007-0001(7).
(d) "Estimated Life Expectancy" means the
member's life expectancy as determined by the applicable IRS mortality
table.
(e) "Payout Period" means
the span of years over which the member elects to receive installment payments
under section (2) of this rule.
(2) Upon retirement, a member of the
individual account program who elects to receive the amounts in the member's
employee and employer accounts in installments under ORS
238A.400(2)
shall designate the number of years over which the installments are to be paid,
selecting a period of 5, 10, 15, or 20 years, or a period equal to the member's
estimated life expectancy. The member may also request that installments be
made on a monthly, quarterly, or annual basis.
(3) Account balances will be adjusted each
month in accordance with OAR
459-007-0330.
(a) The amount of each 5-, 10-, 15-, or
20-year installment will be determined by dividing the member's adjusted
balance by the number of remaining installment payments.
(b) The installment amount for the member's
estimated life expectancy will be determined once a year by dividing the
member's adjusted balance on the anniversary date by the member's remaining
estimated life expectancy, which amount will then be paid monthly, quarterly,
or annually.
(4) If a
member requests installments under section (2) of this rule, but the amount of
the requested installment would be less than $200 as determined at the time of
the initial request, the frequency and Payout Period of the installment payment
will be modified so that the amount of the installment is at least $200. If the
member's account balance is $1,000 or less at the time of the initial request,
the member will not be eligible for installments and the balance will be paid
in a lump sum.
(5) Notwithstanding
the Payout Period selected by the member under section (2) of this rule, any
distribution will be adjusted to comply with the required minimum distribution
requirements of
26 U.S.C.
401(a)(9) and regulations
implementing that section.
(6)
Members who elect a five year Payout Period or a lump sum payment may elect to
directly roll over any portion of their IAP installment or lump sum payment to
an eligible retirement plan subject to the limitations in OAR
459-005-0595.
(7) Members who elect a 10-, 15-, or 20-year,
or an estimated life expectancy Payout Period cannot elect to have any portion
of their installment payments rolled over.
(8) Members who are subject to the required
minimum distribution requirements referenced in section (5) of this rule may
only roll over that portion of their installment or lump sum payments that
exceeds required minimum distribution requirements.
Notes
Statutory/Other Authority: ORS 238A.450
Statutes/Other Implemented: ORS 238A.400
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