Oregon Administrative Rules › Chapter 459 - OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM › Division 7 - EARNINGS AND INTEREST DISTRIBUTION › Section 459-007-0005 - Annual Earnings Crediting

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 For purposes of this rule, "remaining earnings" means earnings available for
			 distribution to a particular account or reserve after deduction of amounts
			 required or authorized by law for other purposes.
(2) Except as otherwise specified in this
			 division, earnings on all accounts and reserves in the Fund shall be credited
			 as of December 31 of each calendar year in the manner specified in this
			 rule.
(3) Health insurance
			 accounts. All earnings attributable to the Standard Retiree Health Insurance
			 Account (SRHIA), Retiree Health Insurance Premium Account (RHIPA) or Retirement
			 Health Insurance Account (RHIA) shall be credited to the account from which
			 they were derived, less administrative expenses incurred by each account, as
			 provided in ORS
			 238.410,
			 238.415 and
			 238.420,
			 respectively.
(4) Employer lump sum
			 payments. All earnings or losses attributable to the employer lump sum payment
			 accounts established under ORS
			 238.229 shall be credited to the accounts from which they were derived.
(5) Member variable accounts. Earnings on the
			 Variable Annuity Account shall first be used to pay a pro rata share of
			 administrative expenses in accordance with ORS
			 238.260(6).
			 If the annual earnings from the Variable Annuity Account are insufficient to
			 pay for the pro rata share of administrative expenses, those administrative
			 expenses shall be paid from earnings on other accounts within the Public
			 Employees Retirement Fund (PERF), if available. If earnings from those accounts
			 within the PERF are insufficient to pay for the administrative expenses, those
			 expenses shall be paid from employer accounts as required by ORS
			 238.610.
			 All remaining earnings or losses attributable to the Variable Annuity Account
			 shall be credited to the participants of that account, as provided under
			 238.260(6) and (7)(b).
(6)
			 Individual Account Program accounts. Earnings on the Individual Account Program
			 accounts established under ORS
			 238A.350 shall first be used to pay a pro rata share of administrative expenses in
			 accordance with ORS
			 238A.350(1).
			 Losses on Individual Account Program target date funds shall be increased by a
			 pro rata share of administrative expenses. After administrative expenses, each
			 Individual Account Program account established under ORS
			 238A.350 shall be credited with the earnings or losses of the specific target date fund
			 to which the account is allocated, except for account balances allocated to the
			 retirement installments fund, which shall be credited with earnings or losses
			 on a monthly basis.
(7)
			 Administrative expenses. Earnings attributable to Tier One regular accounts,
			 the Tier One Rate Guarantee Reserve, Tier Two member regular accounts, judge
			 member regular accounts, the OPSRP Pension Program reserve, Employee Pension
			 Stability Accounts, employer contribution accounts, the Contingency Reserve,
			 the Benefits-in-Force Reserve and the Capital Preservation Reserve shall first
			 be used to pay the system's remaining administrative expenses under ORS
			 238.610.
(8) Contingency Reserve.
(a) In any year in which total earnings on
			 the Fund equal or exceed the assumed rate, an amount not exceeding seven and
			 one-half percent of remaining earnings attributable to Tier One regular
			 accounts, the Tier One Rate Guarantee Reserve, Tier Two regular accounts, judge
			 member regular accounts, the OPSRP Pension Program reserve, Employee Pension
			 Stability Accounts, the Benefits-in-Force Reserve, employer contribution
			 accounts, the Capital Preservation Reserve and the Contingency Reserve shall be
			 credited to the Contingency Reserve to the level at which the Board determines
			 it is adequately funded for the purposes specified in ORS
			 238.670(1).
(b) The portion of the Contingency Reserve
			 allowed under ORS
			 238.670(1)(a)
			 for use in preventing a deficit in the fund due to employer insolvency may only
			 be credited using earnings attributable to employer contribution
			 accounts.