OAR 459-007-0025
Crediting Earnings to a Member Lump Sum Payment

(1)

Definition.

(a)

“Member lump sum payment” means any payment received by PERS that:

(A)

Is not regularly scheduled;

(B)

Is not paid as a statutorily fixed percentage of salary; and

(C)

Is paid voluntarily by the member or payer.

(b)

Member lump sum payments include, but are not limited to:

(A)

Retirement credit purchases.

(B)

Voluntary redeposits, as provided under ORS 238.105 (Restoration of credit forfeited by reason of termination of membership).

(C)

Account balances transferred to PERS pursuant to an integration under ORS 238.680 (Integration of other retirement systems).

(2)

No earnings may be credited to a member lump sum payment that:

(a)

Is paid within 90 days before of after the member’s effective retirement date; or

(b)

May be paid only within 90 days before or after the member’s effective retirement date.

(3)

Earnings from the date of payment to December 31 of the calendar year of the date of payment or the member’s effective retirement date, whichever occurs first, must be credited to the member’s lump sum payment based on the rate derived from the formula:

(Y - X)

Intentionally left blank —Ed.

(R/T)

+ (Z - Y), where:
R = The number of days from the date of payment through the last day of the month the payment is received;
T = The total number of days in the month the payment is received;
X = The year-to-date calculation applicable to the member’s regular account as of the first of the month of the date of payment;
Y = The year-to-date calculation as of the first of the month following the date of payment; and
Z = The year-to-date calculation as of the member’s effective retirement date if such date occurs during the calendar year the payment is received, or, in all other cases, the annual rate applicable to the member’s regular account as of December 31 of the year the payment is received.
Example: A member lump sum payment is received by PERS on May 12, 2002, from a Tier One member whose effective retirement date is August 1, 2003. The Tier One regular account year-to-date calculation as of May 1, 2002, is 1.0263, the Tier One year-to-date calculation as of June 1, 2002, is 1.0330, and the Tier One regular account annual rate for 2002 is 1.0800. Therefore, R = 20, T = 31, X = 1.0263, Y = 1.0330, Z = 1.0800 and the earnings crediting rate is:

(1.0330 - 1.0263)

Intentionally left blank —Ed.

(20⁄31)

+ (1.0800 – 1.0330)
= (0.0067)(0.6452) + .0470
= 0.0043 + .0470
= 0.0513

(4)

If the member’s effective retirement date does not occur in the same calendar year as the date of payment, and the payment is not subject to the provisions of section (2) of this rule, the member lump sum payment must be made a part of the member’s regular account as of January 1 of the year following the date of payment.

Source: Rule 459-007-0025 — Crediting Earnings to a Member Lump Sum Payment, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=459-007-0025.

459‑007‑0001
Definitions 459‑007‑0003
Determination of Tier One Year-to-Date Calculation 459‑007‑0005
Annual Earnings Crediting 459‑007‑0007
Assumed Rate 459‑007‑0009
Allocating Costs of Compliance with Generally Accepted Accounting Principles 459‑007‑0015
Interest Rate Applied to Underpayment of Estimated Benefits 459‑007‑0020
Statutory Limitation on the Crediting of Earnings 459‑007‑0025
Crediting Earnings to a Member Lump Sum Payment 459‑007‑0040
Crediting Earnings upon Withdrawal of a Tier One Member’s Account 459‑007‑0050
Crediting Earnings for a Deceased Tier One Active or Inactive Member 459‑007‑0060
Crediting Earnings to the Tier One Employer Death Benefit 459‑007‑0070
Crediting Earnings at Tier One Service or Disability Retirement 459‑007‑0080
Crediting Earnings at Tier One Service Retirement, Single Payment 459‑007‑0090
Crediting Earnings upon Tier One Service Retirement, Two or More Installment Payments 459‑007‑0110
Crediting Earnings at Tier One Loss of Membership 459‑007‑0160
Crediting Earnings to Loss of Membership Account for Periods of Active Membership 459‑007‑0220
Distribution of Earnings for Withdrawal of Member’s Account — Tier Two 459‑007‑0230
Crediting Earnings for a Deceased Tier Two Active or Inactive Member 459‑007‑0240
Crediting Earnings to the Tier Two Employer Death Benefit 459‑007‑0250
Crediting Earnings at Tier Two Service or Disability Retirement 459‑007‑0260
Crediting Earnings at Tier Two Service Retirement, Single Payment 459‑007‑0270
Crediting Earnings upon Tier Two Service Retirement, Two or More Installment Payments 459‑007‑0290
Crediting Earnings at Tier Two Loss of Membership 459‑007‑0300
Crediting Earnings to Police Officer and Firefighter Unit Accounts in the Fund 459‑007‑0320
Crediting Earnings for IAP Account Lump Sum Payments 459‑007‑0330
Crediting Earnings for IAP Account Installment Payments 459‑007‑0335
Crediting Earnings for IAP Account Pre-Retirement Death Benefit Payments 459‑007‑0340
Crediting Earnings for an OPSRP Pension Program Cash Out of Small Benefits or Withdrawal 459‑007‑0350
Crediting Earnings to the Employee Pension Stability Account at Retirement 459‑007‑0360
Crediting Earnings to the Employee Pension Stability Account at Death 459‑007‑0370
Crediting Earnings to the Employee Pension Stability Account on Withdrawal 459‑007‑0400
Crediting Earnings Upon Withdrawal of a Judge Member Account 459‑007‑0410
Crediting Earnings Upon the Death of a Judge Member 459‑007‑0420
Crediting Earnings at Judge Member Service or Disability Retirement 459‑007‑0510
Crediting Earnings to Employer Contribution Accounts 459‑007‑0530
Crediting Earnings To Employer Lump-Sum Payments 459‑007‑0900
Crediting Earnings To Integration Lump Sum Payments
Last Updated

Jun. 8, 2021

Rule 459-007-0025’s source at or​.us