OAR 459-009-0200
Employer Remitting of Employee Contributions
(1)
A participating employer shall remit to PERS in accordance with OAR 459-070-0110 (Employer Remittance of Contributions) the contributions required by ORS 238A.330 (Employee contributions). Unless otherwise agreed to as provided for in section (2) or (3) of this rule, the employer shall withhold and remit the required contributions on an after-tax basis as defined in OAR 459-005-0001 (Definitions, Generally)(2), which shall be known as “member paid after-tax contributions (MPAT)”.(2)
In accordance with Internal Revenue Code (IRC) Section 414(h), and under provision of ORS 238A.335 (Employer payment of employee contribution)(2)(b), participating employers may voluntarily agree to assume and pay the employee contribution on behalf of its employees, which shall be known as “employer paid pre-tax contributions (EPPT)”. The employer assumption and payment of the employee contributions shall be subject to the following terms and conditions:(a)
The employer’s employment agreement(s) to assume and pay the contributions must be evidenced by a certified copy of the employer’s policy established by statute, charter, ordinance, administrative rule, executive order, collective bargaining agreement, or other written employment policy or agreement. The employer’s employment policy(s) or agreement(s) shall specify that:(A)
The required PERS employee contribution is deemed to be picked up for purposes of IRC Section 414(h)(2) and is assumed and paid for purposes of ORS 238A.335 (Employer payment of employee contribution)(2)(b);(B)
The employees do not have the option of receiving the assumed amount directly;(C)
Employee compensation may not be reduced and the employer shall provide the additional amounts necessary to make the employee contributions; and(D)
The employer’s employment policy(s) or agreement(s) is not retroactive in its application.(b)
The employer’s employment policy(s) or agreement(s) to assume and pay employee contributions may not be construed to require an employer to open or renegotiate a pre-existing collective bargaining agreement or change an employment policy before its normal expiration date.(c)
The employer’s employment policy(s) or agreement(s) must be to assume and pay the full amount, and not a portion thereof, of the affected employees’ contributions required by ORS 238A.330 (Employee contributions).(d)
The employer’s policy(s) or agreement(s) may apply to all its employees or some of its employees. If it applies only to some employees, it shall apply uniformly to employees of the public employer who are similarly situated, such as, but not limited to:(A)
The chief executive officer or administrative head of a public employer.(B)
Management personnel, as defined by the public employer, not otherwise covered by a collective bargaining agreement.(C)
Confidential personnel, as defined by the public employer, not otherwise covered by a collective bargaining agreement.(D)
Administrative personnel, as defined by the public employer, not otherwise covered by a collective bargaining agreement.(E)
Personnel covered by a collective bargaining agreement.(F)
Other personnel, whether full time, part time, temporary, or as a substitute, who are not covered by a collective bargaining agreement.(G)
Personnel hired on or after a date established or agreed upon by the employer.(3)
Under provision of ORS 238A.335 (Employer payment of employee contribution)(2)(a), participating employers may voluntarily agree to “pick-up” the employee contributions withheld, and such picked-up contributions shall be known as “member paid pre-tax contributions (MPPT)”. The employer “pick-up” of the employee contributions shall be subject to the following terms and conditions:(a)
The employer’s agreement(s) to “pick-up” the contributions must be evidenced by a certified copy of the employer’s policy established by statute, charter, ordinance, administrative rule, executive order, collective bargaining agreement, or other written employment policy or agreement. The employer’s policy(s) or agreement(s) shall specify that:(A)
The employees do not have the option of receiving the picked-up amount directly;(B)
The employee compensation shall be reduced by the amount necessary to make the employee contributions; and(C)
The employer’s policy(s) or agreement(s) is not retroactive in its application.(b)
The employer’s employment policy(s) or agreement(s) to “pick-up” employee contributions withheld may not be construed to require an employer to open or re-negotiate a pre-existing collective bargaining agreement or change an employment policy before its normal expiration date.(c)
The employer’s policy(s) or agreement(s) must be to “pick-up” the full amount, and not a portion thereof, of the affected employees’ contributions required by ORS 238A.330 (Employee contributions).(d)
The employer’s employment policy(s) or agreement(s) may apply to all its employees, or some of its employees. If it applies to only some of its employees, it shall apply uniformly to employees of the public employer who are similarly situated, such as, but not limited to:(A)
The chief executive officer or administrative head of a public employer.(B)
Management personnel, as defined by the public employer, not otherwise covered by a collective bargaining agreement.(C)
Confidential personnel, as defined by the public employer, not otherwise covered by a collective bargaining agreement.(D)
Administrative personnel, as defined by the public employer, not otherwise covered by a collective bargaining agreement.(E)
Personnel covered by a collective bargaining agreement.(F)
Other personnel, whether full time, part time, temporary, or as a substitute, who are not covered by a collective bargaining agreement.(G)
Personnel hired on or after a date established or agreed upon by the employer.(4)
The notification of the employer’s written employment policy(s) or agreement(s) to enter into or to revoke (1) the “pick-up”, or (2) to assume and pay contributions on behalf of employees, shall be submitted to PERS for review and approval, and shall become effective on the date the notification is received by PERS. Additional information related to the employer’s policy or agreement shall be provided at the request of staff and in the manner required by staff. If approved by PERS, such policy and agreement may not be revoked by the employer except with prior written notice to PERS. All costs to correct any errors caused by failure to give required notice shall be borne by the employer.(5)
Notwithstanding sections (1) to (4) of this rule, judge member contributions shall be made in accordance with ORS 238.515 (Contributions).
Source:
Rule 459-009-0200 — Employer Remitting of Employee Contributions, https://secure.sos.state.or.us/oard/view.action?ruleNumber=459-009-0200.