OAR 459-076-0045: Cessation of Disability Benefits Upon Reaching Normal Retirement Age

(1) If a member who is receiving an OPSRP disability benefit reaches normal retirement age, as defined in ORS 238A.160, their last disability benefit will be paid on the first of the following month unless the member reaches normal retirement age on the first of a month, then their last disability benefit will be paid on that day . (2) The disability benefit will not automatically convert to a retirement benefit upon the member reaching normal retirement age. The member must apply for service retirement benefits before receiving them. In order to receive a service retirement benefit, the member must: (a) Complete the applicable Service Retirement application(s); and (b) Submit the application(s) to PERS before the first of the month in which the member wishes to commence service retirement benefits . In no case will a service retirement benefit become payable during a month in which a member receives a disability benefit . (3) The OPSRP retirement pension benefit will be based on: (a) The adjusted salary as set forth in section (4) of this rule; and (b) The total retirement credit accrued, set forth in section (5) of this rule. (4) The salary the member was receiving immediately prior to leaving active employment as a result of disability will be adjusted for the cost-of-living for each year after the member left employment and before the member’s effective date of service retirement. (a) Cost-of-living adjustments will be based on the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor and may not exceed a two percent increase or decrease for any year. (b) Cost-of-living adjustments will be made only for calendar years in which the member received an OPSRP disability benefit for at least six months during a calendar year. (5) Retirement credit. A member receiving OPSRP disability benefits will accrue retirement credit, as well as hours of service credit toward vesting, for the entire period of disability until their disability benefit ends. (6) The retirement credit will accrue under the same employment classification in which the member was immediately employed prior to becoming disabled. (7) A member who is receiving disability benefits who reaches normal retirement age and has not applied for a service retirement will become an inactive member on the first of the month following the month in which they reach normal retirement age.