Standard Retiree Health Insurance Account
(1)ORS 238.410 (Board may contract for insurance for retirees)(7) establishes the Standard Retiree Health Insurance Account (SRHIA). The SRHIA shall be used only for the purposes set forth in ORS 238.410 (Board may contract for insurance for retirees)(7).
(2)Upon receipt by PERS, all premium payments as described in OAR 459-035-0090 (Retiree Health Insurance Premium Payment Process), shall be deposited in the SRHIA.
(3)Funds in the SRHIA shall be paid out only as follows:
(a)In accordance with insurance carrier contracts, premiums charged by a carrier for eligible persons’ health insurance coverage, shall be paid to the carrier(s) from the SRHIA.
(b)In accordance with contract(s) entered into by the Board under ORS 238.410 (Board may contract for insurance for retirees)(6), administrative costs incurred in administering the PERS health insurance program shall be paid from the SRHIA.
(4)The total contributions paid into the SRHIA, RHIA and RHIPA will not exceed 25% of the aggregate contributions to the retirement benefits.
(5)The Director shall provide a report at the close of each calendar year that will contain the following elements:
(a)Total contributions by participating employers into the Public Employees Retirement Fund during the calendar year immediately past and the total accumulation of such contributions since July 11, 1987.
(b)Total contributions paid by participating employers into RHIA and RHIPA, and the total accumulation of such contributions since July 11, 1987.
(c)Total contributions by all eligible persons into SRHIA.
(d)The ratio of (a) to (b)+(c) expressed as a percentage.
(6)The Director shall provide a report to the PERS Board disclosing the ratio expressed in the calculation of (5)(d) and shall note whether PERS is compliant with the 25% rule under Internal Revenue Code §401(h).
Rule 459-035-0010 — Standard Retiree Health Insurance Account,