OAR 459-075-0170: Payment of OPSRP Pension Program Benefits

(1) Definitions. For purposes of this rule: (a) “Benefit recipient” means an OPSRP Pension Program member, surviving beneficiary or alternate payee who is entitled to receive a retirement benefit under the OPSRP Pension Program. (b) “Non-survivorship benefit” means a lifetime benefit that is paid to an eligible benefit recipient and ends after death. (c) “Survivorship benefit” means a survivor monthly pension benefit that is paid to a surviving beneficiary after an OPSRP Pension Program member’s death. (2) An OPSRP monthly pension benefit shall be payable each month as of the first day of the month following the effective date of retirement. (a) When the first day of the month falls on a weekend or a PERS holiday, retirement benefits processed through electronic funds transfer shall be payable on the last PERS working day of the prior month. (b) At the time of death, benefits accrued by the member or alternate payee before their death, less any outstanding invoice amounts, will be paid to the designated beneficiary pursuant to ORS 238A.190 or, in the event there is no designated beneficiary at the time of member or alternate payee’s death, to the member or alternate payee’s estate. (3) Notwithstanding section (2) of this rule, retirement benefits payable on January 1 shall always be paid in the month of January. (4) When a benefit recipient who is receiving an OPSRP pension dies: (a) Benefit payments end on the first day of the month in which the benefit recipient dies pursuant to ORS 238A.180. (b) Survivorship benefits payable to a beneficiary are effective on the first day of the month after the last payable OPSRP pension benefit to a deceased member or deceased alternate payee. (5) Notwithstanding section (2) of this rule, retirement benefits payable on January 1 shall always be paid in the month of January. (6) If the member or alternate payee is entitled to receive a cash-out of a small benefit under ORS 238A.195, the benefit accrues on the member’s or alternate payee’s effective retirement date and shall be paid to the member or alternate payee. (7) A retired member who is eligible to convert their service retirement allowance as described in ORS 238A.190(3) must submit a request to convert their benefit before the retirement benefit can be increased to the higher paying Single Life Option benefit. The request must be in a format approved by PERS and received by PERS prior to member’s date of death. To be eligible to convert their benefit pursuant to the termination of a marriage, the member and the beneficiary must have been married on the member’s effective date of retirement.