Oregon Administrative Rules › Chapter 459 - OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM › Division 13 - RETIREMENT BENEFITS › Section 459-013-0280 - Calculation of Variable Match

Current through Register Vol. 63, No. 7, July 1, 2024
This rule will be used to determine the member's retirement
				allowance under the Money Match method provided for in ORS
				238.300(2)(b)(A)
				for members that are subject to the variable annuity adjustment provided under
				ORS 238.260(12). To
				calculate these members' retirement allowance, the following process will be
				used:
(1)
Annuity
			 Calculation
. The balance in the member's regular account will be
			 combined with a projected balance based on what the member's variable account
			 balance would have been had the member's contributions to the variable account
			 been made to the regular account instead. If the member chooses a retirement
			 allowance that includes an annuity, this combined balance will be converted to
			 an annuity using the appropriate actuarial equivalency factor to determine that
			 annuity.
(2)
Pension
			 Calculation
. The pension provided for in ORS
			 238.300(2)(b)(A)
			 will be determined by applying an actuarial equivalency factor to the combined
			 balance determined in accordance with section (1).
(3)
Variable Adjustment
. The
			 retirement allowance calculated under sections (1) and (2), as applicable, will
			 be increased or decreased by applying an actuarial equivalency factor to the
			 difference between the actual balance in the member's variable account on their
			 effective retirement date and the projected balance determined under section
			 (1) above.
(4) The provisions of
			 this rule only apply to members who participated in the variable account
			 program by making contributions to their variable account on or after January
			 1, 1982. The adjustment provided for by ORS
			 238.260(12) and
			 this rule will apply only to those contributions and associated earnings after
			 that date.
(5) In determining "the
			 portion of the annuity payable from the Variable Annuity Account" as required
			 by ORS 238.260(10) and
			 (11), all of the member's variable account
			 will be included, including the portion that is included in calculating the
			 variable adjustment at retirement specified in ORS
			 238.260(12).
(6) The method described in this rule to
			 calculate a member's allowance will also be followed to calculate the
			 "look-back" benefit as described in section 4 of chapter 68, Oregon Laws 2003
			 (HB 2004). The difference in value between the member's variable and what those
			 contributions would have earned in the regular account as of June 30, 2003 will
			 be used as the basis for the "look-back" comparison.
(7) If a member who has a variable account
			 elects to transfer that account balance to the regular account under ORS
			 238.260(14),
			 the difference between the amount in the variable account (subject to the
			 limitations in section (4) of this rule) and what that portion of the variable
			 account would have been had the member instead invested solely in the regular
			 account shall be determined as of the date of the transfer. That difference
			 will be applied to the member's regular account as described in section (1) of
			 this rule and also pursuant to ORS
			 238.260(12)(b) or
			 (c) to increase or decrease the member's
			 retirement allowance.
(8) The
			 provisions of this rule are effective July 1, 2004.
Example referenced is available from the
				  agency.
Stat. Auth: ORS
				  238.650
Stats. Implemented: ORS
				  238.260(12);
				  238.300(1)
				  & (2)