Oregon Administrative Rules › Chapter 459 - OREGON PUBLIC EMPLOYEES RETIREMENT SYSTEM › Division 50 - DEFERRED COMPENSATION › Section 459-050-0090 - Direct Rollover and Trustee-to-Trustee Transfer

Current through Register Vol. 63, No. 7, July 1, 2024
The purpose of this rule is to establish the criteria and
				processes for Direct Rollovers between the Deferred Compensation Program and an
				Eligible Retirement Plan and Trustee-to-Trustee Transfers between the Deferred
				Compensation Program and either a defined benefit governmental plan or a
				deferred compensation plan described in Code Section 457(b) that is maintained
				by a state, political subdivision of a state, or any agency or instrumentality
				of a state or political subdivision of a state.
(1) Definitions. The following definitions
			 apply for the purpose of this rule:
(a)
			 "Code" means the Internal Revenue Code of 1986, as amended.
(b) "Direct Rollover" means:
(A) The payment of an eligible rollover
			 distribution by the Deferred Compensation Program to an Eligible Retirement
			 Plan specified by the Distributee; or
(B) The payment of an eligible rollover
			 distribution by an Eligible Retirement Plan to the Deferred Compensation
			 Program.
(c)
			 "Distributee" means an individual who has requested a distribution under one of
			 the following criteria:
(A) A Deferred
			 Compensation Program participant who has a severance of employment;
(B) A Deferred Compensation Program
			 participant who is approved for a de minimis distribution under OAR
			 459-050-0075(1);
(C) The surviving
			 spouse of a deceased participant;
(D) The spouse or former spouse who is the
			 alternate payee under a domestic relations order that satisfies the
			 requirements of ORS 243.507 and OAR 459-050-0200  to
			 459-050-0250; or
(E) The non-spouse
			 beneficiary of a deceased participant who is a designated beneficiary under
			 Code Section 402(c)(11).
(F) A plan
			 participant who has requested a Trustee-to-Trustee Transfer for the purpose of
			 purchasing permissive service credit as described in Code Section
			 415(n).
(d)
			 "Distributing Plan" means an Eligible Retirement Plan that is designated to
			 distribute a direct rollover or send a Trustee-to-Trustee Transfer to another
			 eligible plan (recipient plan).
(e)
			 "Eligible Retirement Plan" means any one of the following:
(A) An individual retirement account or
			 annuity described in Code Section 408(a) or (b), including a Roth IRA as
			 described in Code Section 408(A);
(B) An annuity plan described in Code Section
			 403(a);
(C) An annuity contract
			 described in Code Section 403(b);
(D) A qualified trust described in Code
			 Section 401(a);
(E) An eligible
			 deferred compensation plan described in Code Section 457(b), which may include
			 a qualified Roth contribution program defined in Code Section 402A, and that is
			 maintained by a state, political subdivision of a state, or any agency or
			 instrumentality of a state or political subdivision of a state; or
(F) A plan described in Code Section
			 401(k).
(f) "Eligible
			 Rollover Distribution" means any distribution of all or any portion of a
			 person's account in an Eligible Retirement Plan. An Eligible Rollover
			 Distribution may not include:
(A) A
			 distribution that is one of a series of substantially equal periodic payments
			 made no less frequently than annually for the life (or life expectancy) of the
			 Distributee or the joint lives (or life expectancies) of the Distributee and
			 the Distributee's designated beneficiary, or for a specified period of 10 years
			 or more;
(B) A distribution that is
			 a required or minimum distribution under Code Section 401(a)(9);
(C) An amount that is distributed due to an
			 unforeseen emergency under OAR 459-050-0075(2).
(g) "Recipient Plan" means an Eligible
			 Retirement Plan that is designated by a Distributee to receive a Direct
			 Rollover or Trustee-to-Trustee Transfer.
(h) "Trustee-to-Trustee Transfer" means a
			 transfer either:
(A) By the Deferred
			 Compensation Program to:
(i) A governmental
			 defined benefit plan (within the meaning of Code Section 414(d)) for the
			 purchase of permissive service credit as described in Code Section 415(n);
			 or
(ii) A deferred compensation
			 plan described in Code Section 457(b) that is maintained by a state, political
			 subdivision of a state, or any agency or instrumentality of a state or
			 political subdivision of a state.
(B) To the Deferred Compensation Program from
			 a deferred compensation plan described in Code Section 457(b) that is
			 maintained by a state, political subdivision of a state, or any agency or
			 instrumentality of a state or political subdivision of a
			 state.