Crediting Earnings To Integration Lump Sum Payments
(1)For the purposes of this rule, “integration lump sum payment” means any funds received from an employer as the transfer of any prior plan assets under ORS 238.680 (Integration of other retirement systems), excluding any member account balances.
(2)If the integrating employer’s members have no prior plan assets to transfer, the integration contract will state what portion of the integration lump sum payment is attributable to member regular accounts.
(3)Pursuant to ORS 238.229 (Effect of lump sum payment to side account on contributions of pooled employer)(4), the integration 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 integration 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 integration lump sum payment shall receive earnings based on the difference between the December latest year-to-date calculation for Tier Two annual earnings and the Tier Two year-to-date calculation in effect as of the first of the month following the payment date.
(c)In subsequent calendar years, earnings shall be credited to the integration lump sum payment in accordance with OAR 459-007-0530 (Crediting Earnings To Employer Lump-Sum Payments)(2).
Rule 459-007-0900 — Crediting Earnings To Integration Lump Sum Payments,