OAR 459-045-0030
General Administration for Chapter 238 Tier One/Tier Two
(1)
Alternate payee account.(a)
A percentage award will be applied against the member’s regular account and if applicable, Variable Annuity Account. A dollar award will be applied proportionately against the member’s regular account and if applicable, Variable Annuity Account.(A)
Once the amount of an alternate payee’s award is determined, funds will be transferred to an alternate payee account.(B)
An alternate payee may not participate in the Variable Annuity Account program.(C)
Earnings and losses on the alternate payee’s account will be based on regular account earning rates in accordance with OAR chapter 459, division 007 after the transfer.(b)
At the time of the alternate payee’s death, if the provisions of ORS 238.395 (Additional death benefit) are met by the member, the alternate payee’s beneficiary will receive matching employer dollars regardless of whether a final court order awarded matching employer dollars.(c)
An alternate payee is not entitled to matching employer dollars if the alternate payee elects to receive the award in the form of a withdrawal, regardless of whether a final court order awarded matching employer dollars.(d)
At retirement, an alternate payee may elect one of the following benefit payment options, as described in ORS 238.305 (Optional service retirement allowance calculations):(A)
Refund Annuity.(B)
Option 1.(C)
Option 4 (15 Year Certain).(D)
Lump-sum Option 1.(E)
Total lump-sum option.(e)
An alternate payee has 60 days from the date of the first actual, not estimated, payment to change the retirement option, except that the designation of beneficiary under the Refund Annuity or Option 4 (15 Year Certain) may be changed at any time before an alternate payee’s death.(f)
An alternate payee whose total benefit is less than $200 per month under Option 1 shall receive a one time lump-sum payment as provided under ORS 238.315 (Lump sum payment in lieu of small allowance).(2)
If a retired member changes the beneficiary designation pursuant to a final court order, the member’s monthly benefit must be recalculated.(a)
The benefit recalculation shall be effective the first of the month after the month in which PERS receives a written request from the member to change beneficiary.(b)
The request must provide the full name, a copy of proof of birth, and the relationship of the new beneficiary to the member.(3)
If a final court order provides that a retired member may elect to receive the Option 1 benefit pursuant to ORS 238.305 (Optional service retirement allowance calculations)(6), in order to make that election the member must submit a written request to PERS.(4)
A member is released from a court ordered benefit payment option:(a)
If the alternate payee award is a reduction, and(b)
The alternate payee is eligible to elect a separate benefit option at any time after the member’s earliest retirement eligibility and elects to do so.(5)
Intentionally left blank —Ed.(a)
PERS shall provide to the alternate payee a written summary of the information used in calculating the alternate payee’s retirement allowance or benefit. An alternate payee may dispute the accuracy of the information used in making the calculation of the retirement allowance or benefit by filing a written notice by the later of:(A)
The 30th day after the date on which the calculation and information is provided to the alternate payee; or(B)
The 30th day after the issue date of the first actual, not estimated, payment of a retirement allowance or benefit to the alternate payee.(b)
Upon receiving a notice described above, PERS shall determine the accuracy of the disputed information and make a written decision either affirming the accuracy of the original information and calculation or changing the calculation using corrected information. PERS shall provide the alternate payee a copy of the decision and a written explanation of any applicable statutes and rules.(c)
The filing of a notice under this section extends the time allowed for election of an optional form of retirement allowance or benefit until the 30th day after the conclusion of the dispute proceeding or review results in a change in the calculation of the retirement allowance or benefit.(d)
This section does not limit any authority of PERS to correct an incorrect calculation of any retirement allowance or benefit.(6)
If an alternate payee was a partner of the member, the award to the alternate payee is a distribution to the member for federal tax purposes. Therefore:(a)
An award of a monthly benefit amount as described in OAR 459-045-0010 (Tier One/Tier Two Division of Benefits)(3)(b) and (4)(b) is only administrable as a deduction from the member’s monthly payment.(b)
An award of an alternate payee account as described in OAR 459-045-0010 (Tier One/Tier Two Division of Benefits)(2) will not be distributed until such distribution would not jeopardize the plan’s tax qualified status.
Source:
Rule 459-045-0030 — General Administration for Chapter 238 Tier One/Tier Two, https://secure.sos.state.or.us/oard/view.action?ruleNumber=459-045-0030.