OAR 459-005-0530: Limitation for Employers with Multiple Retirement Plans — for Contributions and Distributions Before January 1, 2000

(1) Defined Benefit Plans. For purposes of OAR 459-005-0535, Annual Benefit Limitation and, before January 1, 2000, for purposes of section (3) of this rule, all defined benefit plans of an employer, including plans that have been terminated, shall be treated as one defined benefit plan. (2) Defined Contribution Plans. For purposes of OAR 459-005-0545, Annual Addition Limitation and, before January 1, 2000, for purposes of section (3) of this rule, all defined contribution plans of an employer, including plans that have been terminated, shall be treated as one defined contribution plan. (3) Combined Plan Limitation. If any member also participates in a defined contribution plan maintained by the same employer, the sum of the defined benefit plan fraction and the defined contribution plan fraction for any calendar year before the 2000 calendar year shall not exceed 1.0. (a) Defined Benefit Plan Fraction. For purpose of this section, the defined benefit fraction is a fraction with the following numerator and denominator: (A) The numerator is the member’s projected annual benefit under the plan, determined as of the close of the year. (B) The denominator is the lesser of the following amounts: (i) The product of 1.25, multiplied by the applicable dollar limitation for the calendar year, as defined in OAR 459-005-0535, Annual Benefit Limitation; or (ii) Before January 1, 1995, the product of 1.4 multiplied by the member’s 100 percent (100%) of compensation limitation under IRC Section 415(b)(1)(B) for the calendar year. (b) The Defined Contribution Plan Fraction. For purposes of this section, the defined contribution plan fraction is a fraction with the following numerator and denominator: (A) The numerator is the sum of the annual additions to the member’s account as of the close of the calendar year; and (B) The denominator is the sum of the lesser of the following amounts determined for the calendar year and for each prior calendar year of service with the employer: (i) The product of 1.25, multiplied by the dollar limitation in effect under IRC Section 415(c)(1)(A) for that calendar year; or (ii) The product of 1.4, multiplied by the member’s 25 percent (25%) of compensation limitation under IRC Section 415(c)(1)(B) for the calendar year. (4) Employer. For purposes of the limitations in this rule, OAR 459-005-0535, Annual Benefit Limitation, and OAR 459-005-0545, Annual Addition Limitation, all employers required to be aggregated under IRC Section 414(b) or (c), as modified by IRC Section 415(h), shall be treated as a single employer. (5) Reduction in Benefit to Comply With Limitations. If benefits or contributions under another retirement plan, when combined with the benefits under PERS, exceed the limitations in this rule, the benefits under PERS shall be reduced to the extent of the excess and the benefits or contributions under the other plan shall stand. (6) Retroactive Application. Except as otherwise provide in this rule, this rule shall be applied retroactively to January 1, 1987.