Oregon Administrative Rules › Chapter 459 - OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM › Division 9 - PUBLIC EMPLOYER › Section 459-009-0350 - Allocation of PERS Employer Actuarial Assets and Liabilities

Current through Register Vol. 63, No. 7, July 1, 2024
Purpose. The purpose of this rule is to provide guidance in the
				drafting of agreements by employers involved in transfers of PERS-covered
				employees regarding the allocation of PERS employer actuarial assets and
				liabilities; to provide guidance to the Board in determining the allocation of
				such assets and liabilities when such allocation is not acceptably addressed
				based on the criteria of this rule in agreements between the employers involved
				in the transfers; to provide guidance to the Board in determining the
				allocation of PERS employer actuarial assets and liabilities if dissolution of
				an employer occurs and the allocation of these assets and liabilities is not
				otherwise acceptably addressed according to this rule in the dissolution; and
				to provide guidance to the Board when an employer is unable to amortize its
				PERS employer actuarial assets and liabilities as directed by the Board. All
				the provisions of this rule shall be applied at the discretion of the PERS
				Board to achieve sound actuarial funding of the system as well as full funding
				of the individual benefits accrued by members. This rule does not address
				whether or not PERS is required to pay benefits that are unfunded.
(1) Definitions. For the purposes of this
			 rule:
(a) "Actuarial Funded Percentage" means
			 the ratio, expressed as a percentage, of actuarial liabilities to actuarial
			 assets as determined by a PERS-approved actuary.
(b) "Actuarial Surplus" means the excess of
			 the actuarial value of assets over the actuarial liability.
(c) "Actuarial Valuation" means the
			 determination by the PERS-approved actuary, as of an actuarial valuation date,
			 of the normal cost, actuarial liability, actuarial value of assets, and related
			 actuarial present values for a pension plan.
(d) "Actuarial Valuation Date" is the date
			 approved by the Board for which demographic and economic data has been captured
			 and used in an actuarial valuation.
(e) "Dissolution" means voluntary or
			 involuntary corporate dissolution, extinguishment, or termination of the
			 existence of an employer.
(f)
			 "PERS-Approved Actuary" means an actuary employed by PERS for ongoing actuarial
			 advice or any other actuary approved in writing by the PERS executive director
			 or designee.
(g) "PERS Employer
			 Actuarial Assets" means the assets contributed to PERS by an employer and by
			 employees for service to that employer plus attributed earnings as determined
			 by a PERS-approved actuary. Such assets include Benefits in Force reserve
			 assets as determined by a PERS-approved actuary.
(h) "PERS Employer Actuarial Liabilities"
			 means the liabilities of a particular employer determined by a PERS-approved
			 actuary that represent the actuarially determined amounts necessary to fund
			 benefits due PERS-covered members and their beneficiaries.
(i) "Receiving Employer" means an employer to
			 which PERS-covered employees are transferred from a participating
			 employer.
(j) "Transfer" means the
			 movement of one or more PERS-covered employees and their designated position(s)
			 from the payroll of one employer to the payroll of another employer as the
			 result of an agreement between the two employers.
(k) "Transferring Employer" includes the
			 following:
(A) A participating employer from
			 which PERS-covered employees are transferred;
(B) A participating employer that forms one
			 or more separate governmental entities that employ PERS-covered employees
			 transferred from the participating employer.
(l) "Unfunded Actuarial Liability" or "UAL"
			 means the excess of the actuarial liability over the actuarial value of
			 assets.