OAR 459-007-0530
Crediting Earnings To Employer Lump-Sum Payments

(1) Definitions. For the purposes of this rule:
(a) “Allocated Earnings” means the actual investment earnings or losses of the Public Employees Retirement Fund (PERF), apportioned based upon the proportionate size of the side account in relation to the PERF and adjusted for administrative costs as described in ORS 238.229 (Effect of lump sum payment to side account on contributions of pooled employer)(3). These earnings are exempt from funding requirements of the Contingency or Capital Preservation Reserves.
(b) “Amortized Amount” means the amount of a Side Account used to offset contributions due from the employer.
(c) “Employer lump-sum payment” means:
(A) Any employer payment that is:
(i) Not regularly scheduled;
(ii) Not paid as a percentage of salary;
(iii) Paid at the employer’s election instead of at the PERS Board’s direction; and
(B) Any payment deposited into a side account for the benefit of an employer.
(d) “UAL factor” means the monthly or annual rate based upon allocated side account earnings.
(2) Subject to ORS 238.229 (Effect of lump sum payment to side account on contributions of pooled employer)(4), the employer lump-sum payment shall first be applied to liabilities attributable to creditable service by employees of the employer before the employer was grouped with other public employers. Earnings on these amounts shall be credited based on the following:
(a) For the month in which the employer lump-sum payment is received, earnings shall be credited based on the average annualized rate, prorated for the number of days from date of receipt to the end of the month.
(b) For the remainder of the year, the employer lump-sum payment shall receive earnings based on the difference between the final Tier Two annual earnings rate and the Tier Two earnings rate in effect as of the first of the month after receipt of the payment.
(c) In subsequent calendar years, earnings or losses shall be credited to the employer lump-sum payment in accordance with OAR 459-007-0005 (Annual Earnings Crediting)(14).
(3) Earnings on an employer lump-sum payment held in a separate Side Account shall be credited to the Side Account based on the following:
(a) For the month in which the employer lump-sum payment is received, earnings shall be credited based on the average annualized rate, prorated for the number of days from date of receipt to the end of the month.
(b) For the remainder of the year, the employer lump-sum payment shall receive earnings based on the difference between the annual UAL factor and the UAL factor in effect as of the first of the month after receipt of the payment.
(4)(a) Amortized amounts to be applied to the Employer Contribution Account shall receive earnings or losses based on the UAL factor, effective as of the first of the calendar month following the date of the application of the amortized amount.
(b) In subsequent calendar years, earnings shall be credited to the remaining balance of the employer’s side account created when the lump-sum payment was received on an annual basis in accordance with OAR 459-007-0005 (Annual Earnings Crediting)(4).
(5) The provisions of this rule are effective on January 1, 2008.

Source: Rule 459-007-0530 — Crediting Earnings To Employer Lump-Sum Payments, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=459-007-0530.

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 459-007-0530’s source at or​.us