OAR 459-009-0085: Employer Unfunded Actuarial Liability Lump-Sum Payments Without an Actuarial Calculation

The words and phrases used in this rule have the same meaning given them in OAR 459-009-0086. (1) An actuarial calculation is not required if an employer intends to make a UAL lump-sum payment: (a) Into an existing side account; or (b) Into a new side account without specifying a new employer contribution rate effective date. (2) An employer intending to make a UAL lump-sum payment to establish a new side account under this rule must notify PERS Actuarial Services of the amount of the intended lump-sum payment at least 30 calendar days before the date of the payment. (3) PERS staff must notify the employer within five business days of receipt of the notification if the notification is incomplete. (4) Upon receipt of the notification required under section (2) of this rule, PERS staff shall calculate the minimum payment required under OAR 459-009-0086 based on: (a) For employers participating in an employer actuarial pool, 100 percent of the employer’s share of the UAL for the employer actuarial pool. This calculation will be determined by: (A) The fair value UAL of the employer actuarial pool, from the most recent actuarial valuation; and (B) The employer’s covered salary, as a proportion of the pool, as reported in the most recent actuarial valuation. (b) For employers not participating in an employer actuarial pool, the individual employer’s fair value UAL from the most recent actuarial valuation. (5) Notification of calculation. PERS staff must notify the employer in writing of the results of PERS staff’s calculation in subsection (4)(a) or (b) of this rule. In addition, PERS must send the employer a notification describing risks and uncertainties associated with the calculation of the individual employer’s UAL if such notification has not already been provided. (6) Employers making a UAL lump-sum payment into an existing side account and employers making a UAL lump-sum payment into a new side account as noticed under section (2) of this rule must notify PERS Actuarial Services in writing at least three business days before making a UAL lump-sum payment and specify: (a) The amount of the payment; (b) The date the employer intends to make the payment; (c) Whether the payment is to establish a new side account or to be deposited into an existing side account; and (d) If the payment is to be deposited into an existing side account and the employer has more than one side account, which side account is to receive the deposit. (7) For a UAL lump-sum payment under this rule, whether the payment is to establish a new side account or is added to an existing side account, the adjustment to the employer rates will be calculated in the actuarial valuation for the year in which the UAL lump-sum payment is made, and will be effective on July 1 of the year following publication of that valuation. (8) Nothing in this rule shall be construed to prevent the PERS Board from taking action pursuant to ORS 238.225.