OAR 459-005-0506: Plan Compliance with Federal Statutes and Regulations

(1) The purpose of administrative rules OAR 459-005-0500 to 459-005-0799 is to assure compliance with applicable federal statutes and regulations for governmental retirement plans qualified under the Internal Revenue Code (IRC) Section 401(a), and to implement ORS Chapters 238 and 238A by establishing limits on contributions and benefits under the Public Employees Retirement System (PERS). (2) Definitions in general for OAR 459-005-0500 to 459-005-0799: (a) “Member” shall have the same meaning as provided in ORS 238.005 with respect to members covered by ORS Chapter 238 and as provided in ORS 238A.005 with respect to members covered by ORS Chapter 238A. (b) "Employment" means service as an employee as defined in OAR 459-005-0001(12). (c) "Board" shall have the same meaning as provided in ORS 238.005. (d) "PERS" shall have the same meaning as provided in OAR 459-005-0001(24). (e) "Defined contribution plan (DC)" means a plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant's account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant's account. For purposes of IRC Section 414(k), the individual account program under ORS Chapter 238A shall be treated as a DC plan for the purposes of IRC Sections 72(d) and 415. (f) "Defined benefit plan (DB)" means a plan which is not a defined contribution plan. For purposes of IRC Section 414(k), the pension programs under ORS Chapters 238 and 238A shall be treated as part of a defined benefit plan for purposes of IRC Sections 72(d) and 415. (3) The provisions of this rule are effective on January 1, 2004.