OAR 459-010-0045
Substitution of Annuity
(1)
A public employer participating in the Public Employees Retirement System may petition the Public Employees Retirement Board to substitute an annuity which an employee has already commenced to purchase as provided by ORS 238.015 (Membership generally)(7) for all benefits otherwise provided for in ORS Chapter 238 (Public Employees Retirement System).(2)
The benefit adequacy of the substitute annuity shall be determined by the employer. In determining the adequacy of the benefits, the employer shall assure that the substitute annuity provides no less than 80 percent of the total actuarial present value of what the system would provide, under a service or disability retirement or a death benefit, and vesting for the same period of employment.(3)
A petition for substitution of an annuity by a public employer shall include the following:(a)
A copy of the proposed contract between the employee and the employer for the substitution of an annuity;(b)
A complete description of the annuity to be substituted.(4)
PERS staff shall have PERS’ consulting actuary review the public employer’s petition to assure:(a)
The documentation that the benefit adequacy meets the standard in section (2) of this rule.(b)
The proposed contract between the employee and the employer is in compliance with state and federal laws and regulations.(c)
The public employer shall bear the costs of the actuarial review.(5)
The Board may require the public employer to provide additional information necessary to confirm the employer’s determination of the actuarial present value of benefits to be provided by the substituted annuity.(6)
The retirement annuity provided by the Federal Retirement System is considered as an acceptable annuity for an employee participating in that plan and desiring to be exempted from contributing to PERS, provided the federal annuity is adequate in amount.(7)
In all cases, the agreement for substitution of an annuity must be executed by the employee, the employer, and the (Board) system.(8)
In the event an employee elects to no longer substitute an annuity, the employee, if otherwise eligible, shall become an active member in the system effective with the first of the calendar month following receipt of the employee’s written election.
Source:
Rule 459-010-0045 — Substitution of Annuity, https://secure.sos.state.or.us/oard/view.action?ruleNumber=459-010-0045.