OAR 459-005-0540
Permissive Service Credit

(1)

General Rule. If a member makes one or more after-tax contributions to PERS to purchase permissive service credit, then all such contributions by the member must satisfy one of the following limitations:

(a)

The annual benefit limitation under OAR 459-005-0535 (Annual Benefit Limitation), Annual Benefit Limitation, determined by treating the accrued benefit derived from all of the member’s contributions to purchase permissive service credit as part of the member’s annual benefit; or

(b)

The annual addition limitation under OAR 459-005-0545 (Annual Addition Limitation), Annual Addition Limitation, determined by treating all of the member’s contributions to purchase permissive service credit annual additions.

(2)

Definition of Permissive Service Credit. “Permissive service credit” means service credit that satisfies the requirements in subsection (a) of this section and is not excluded under subsection (b) of this section.

(a)

Permissive service credit generally means service credit that:

(A)

Is recognized by PERS as the retirement credit for purposes of calculating a member’s benefits;

(B)

Has not previously been credited to the member; and

(C)

Is credited to the member only if the member makes a voluntary additional contribution in an amount calculated under the terms of the plan, which does not exceed the amount necessary to fund the benefit attributable to the purchased service credit.

(b)

Notwithstanding subsection (a) of this section, “permissive service credit” does not include:

(A)

Previously forfeited service that is reinstated under ORS 238.105 (Restoration of credit forfeited by reason of termination of membership) or 238.115 (Alternate method of restoring credit forfeited by reason of termination of membership);

(B)

Periods of military service that are purchased under ORS 238.156 (Contributions, benefits and retirement credit for periods of service in uniformed services or Armed Forces); or

(C)

Periods of nonqualified service that do not satisfy the requirements in section (3) of this rule.

(3)

Nonqualified Service. Nonqualified service purchased by a member shall be treated as permissive service credit only if the member purchases no more than five years of nonqualified service, and the member has at least five years of active membership before purchasing the nonqualified service. For this purpose, “nonqualified service” means any service other than the following:

(a)

Military service (other than military service purchased under ORS 238.156 (Contributions, benefits and retirement credit for periods of service in uniformed services or Armed Forces));

(b)

Service as an employee with one of the following employers, provided that the employee does not receive a retirement benefit from the same service under another plan:

(A)

A governmental employer;

(B)

A public, private, or sectarian school that provides elementary or secondary education; or

(C)

An association of governmental employees.

(4)

Retroactive Application. The provisions of this rule shall be applied retroactively to January 1, 1998.

Source: Rule 459-005-0540 — Permissive Service Credit, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=459-005-0540.

459‑005‑0001
Definitions, Generally 459‑005‑0005
Amendments to Retirement Law 459‑005‑0010
Public Employees Retirement Fund, A Trust 459‑005‑0025
Student Employee 459‑005‑0030
Payments of Sums to Persons Entitled Thereto 459‑005‑0040
Verification of Retirement Data 459‑005‑0055
Actuarial Equivalency Factors 459‑005‑0060
Standards for the Adoption of New Actuarial Equivalency Factors 459‑005‑0100
Definitions — Member’s Fiduciary 459‑005‑0110
Fiduciary Document Requirements 459‑005‑0130
Termination of Member’s Fiduciary 459‑005‑0140
Permissible Actions Under A Fiduciary Document 459‑005‑0150
Effective Date of Fiduciary Document Rules 459‑005‑0180
Incapacity of Members, Beneficiaries, and Alternate Payees 459‑005‑0210
Transmittal of Reports and Documents 459‑005‑0215
Transmittal of Remittances or Payments 459‑005‑0220
Receipt Date for Reports, Documents, Remittances, Payments, Data, and Requests 459‑005‑0225
Requirement to Make Payments by Electronic Funds Transfer 459‑005‑0250
Recovery of Administrative Costs 459‑005‑0260
Accounts Receivable — Fraud 459‑005‑0300
Post-Doctoral Scholar 459‑005‑0310
Date of Participation and Transfer of Employee Funds to the Optional Retirement Plan 459‑005‑0350
Membership Status of Persons in Concurrent Employment Eligible to Participate in an Optional or Alternative Retirement Plan 459‑005‑0370
Date of Participation and Transfer of Employee Funds to an Alternative Retirement Plan — OHSU 459‑005‑0400
General Applicability of Attorney General’s Model Public Contract Rules 459‑005‑0506
Plan Compliance with Federal Statutes and Regulations 459‑005‑0510
Cost-of-Living Adjustment 459‑005‑0525
Ceiling on Compensation for Purposes of Contributions and Benefits 459‑005‑0530
Limitation for Employers with Multiple Retirement Plans — for Contributions and Distributions Before January 1, 2000 459‑005‑0535
Annual Benefit Limitation 459‑005‑0540
Permissive Service Credit 459‑005‑0545
Annual Addition Limitation 459‑005‑0560
Required Minimum Distributions, Generally 459‑005‑0580
Trustee-to-Trustee Transfers 459‑005‑0590
General Provisions and Applicability Date — Direct Rollovers 459‑005‑0591
Definitions — Direct Rollovers 459‑005‑0595
Limitations — Direct Rollovers 459‑005‑0599
Election Procedures — Direct Rollovers 459‑005‑0600
Precedence for Pre-Tax and Post-Tax Deductions from Benefit Payment 459‑005‑0605
Reimbursement for Medical Records Requested by PERS 459‑005‑0610
Recovery of Overpayments 459‑005‑0615
Minimum Retroactive Payment 459‑005‑0620
Uncollectible Debt Owed to PERS
Last Updated

Jun. 8, 2021

Rule 459-005-0540’s source at or​.us