OAR 459-007-0050
Crediting Earnings for a Deceased Tier One Active or Inactive Member


Upon the death of an active or inactive Tier One member, earnings from the date of death to the date of distribution shall be credited as specified in this rule.

(1)

Definitions. For purposes of this rule:

(a)

“Death benefit amount” means the sum of the member’s regular account and variable account as of the first of the month of the member’s death and held by PERS for the beneficiary or beneficiaries of a deceased member until benefits are distributed.

(b)

“Effective date of request” means the first of the month in which PERS receives a valid request for distribution of the death benefit amount.

(2)

For a member whose date of death is on or after January 1, 2000:

(a)

If the member’s death is before July 1, 2003, earnings shall be credited to the member’s regular account as follows:

(A)

If earnings for the calendar year before the date of the member’s death have not yet been credited, earnings for that year shall be credited based on the greater of the assumed rate or the latest year-to-date calculation available for that year.

(B)

Earnings for the calendar year of the member’s death shall be credited based on the greater of the assumed rate, prorated from January 1 to the first of the month of the member’s death, or the latest year-to-date calculation as of the first of the month of the member’s death.

(b)

If the member’s death is on or after July 1, 2003, earnings shall be credited to the member’s regular account as follows:

(A)

If earnings for the calendar year before the date of the member’s death have not yet been credited, earnings for that year shall be credited based on the latest year-to-date calculation available for that year.

(B)

Earnings for the calendar year of the member’s death shall be credited based on the latest year-to-date calculation as of the first of the month of the member’s death.

(c)

If the member was participating in the Variable Annuity Account, earnings shall be credited to the member’s variable account as follows:

(A)

If earnings for the calendar year before the calendar year of the member’s death have not yet been credited, earnings for that year shall be credited based on the latest year-to-date calculation available for that year.

(B)

Earnings for the calendar year of the member’s death shall be credited based on the latest year-to-date calculation as of the first of the month of the member’s death.

(d)

After earnings have been credited in accordance with subsections (a), (b) and (c), the value of the member’s variable account shall be added to the value of the member’s regular account and the sum shall constitute the death benefit amount as of the first of the month of the member’s death.

(e)

If the effective date of request occurs within the same year as the date of death, earnings from the first of the month of the member’s death to the effective date of request shall be credited based on the latest year-to-date calculation for Tier Two regular accounts as of the effective date of request less the latest year-to-date calculation for Tier Two regular accounts as of the first of the month of the member’s death, and subsections (f) through (h) of this section do not apply.

(f)

Earnings on the death benefit amount from the first of the month of the member’s death to the end of the calendar year shall be credited based on the Tier Two annual rate less the latest year-to-date calculation for Tier Two as of the first of the month of the member’s death.

(g)

Earnings on the death benefit amount for calendar years following the year of the member’s death and before the year funds are requested shall be credited in accordance with OAR 459-007-0005 (Annual Earnings Crediting) for Tier Two regular accounts.

(h)

Earnings on the death benefit amount from January 1 of the year funds are requested to the effective date of request shall be based on the latest year-to-date calculation for Tier Two regular accounts.

(i)

Earnings from the effective date of request to the date of distribution shall be based on the average annualized rate.

(3)

If a member’s date of death is before July 1, 2003, and the effective date of request is before December 31, 2004, earnings shall be credited as follows:

(a)

Earnings from the date of death through December 31, 1999, shall be credited to the member’s regular account as of December 31, 1999, in accordance with the provisions of this rule in effect from the date of death through December 31, 1999.

(b)

Earnings from January 1, 2000, to the date of distribution shall be credited in accordance with ORS 238.390 (Death benefit) as simple interest prorated for that period based on the assumed rate.

(4)

If a member’s date of death is before January 1, 2000, but the effective date of request is on or after December 31, 2004, earnings shall be credited as follows:

(a)

Earnings shall be credited in accordance with the version(s) of OAR 459-007-0050 (Crediting Earnings for a Deceased Tier One Active or Inactive Member) in effect up to January 1, 2000.

(b)

As of January 1, 2000, the deceased member’s account(s) shall be converted to a death benefit amount under subsection (2)(d) of this rule.

(c)

Earnings on the death benefit amount from January 1, 2000, to the date of distribution shall be credited in accordance with subsections (2)(e) through (2)(h) of this rule.

(5)

If a beneficiary elects a monthly payment, earnings shall be credited to the death benefit amount from the first of the month of the member’s date of death to the effective date of the monthly payment, which is the first of the month following the member’s date of death, as follows:

(a)

Subtract the latest Tier Two regular account year-to-date calculation available as of the first of the month of the member’s death, from the latest Tier Two regular account year-to-date calculation available as of the effective date of the monthly payment.

(b)

Multiply the beneficiary’s death benefit amount as of the first of the month of the member’s death by the rate calculated in subsection (a) of this section.

(6)

The provisions of this rule are effective on July 1, 2003.

Source: Rule 459-007-0050 — Crediting Earnings for a Deceased Tier One Active or Inactive Member, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=459-007-0050.

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 459-007-0050’s source at or​.us