OAR 459-080-0410: Voluntary Contributions to Individual Account Program (IAP)

(1) Definitions. (a) “Voluntary contribution effective date” is the: (A) First day of the month following one full calendar month after the voluntary contribution election date, if the voluntary contribution election date is on or after the second day of the month. (B) First day of the following month if the voluntary contribution election date is the first day of the month. (b) “Voluntary contribution election date” is the date PERS receives a member’s voluntary contribution election request. (c) “Voluntary contribution stop date” is the: (A) First day of the month following one full calendar month after PERS receives a request to discontinue an election if such request is received on or after the second day of the month. (B) First day of the following month if PERS receives the request on the first day of the month. (2) Members may elect to make voluntary contributions to the employee account under the Individual Account Program (IAP) in the same amount credited to the member’s Employee Pension Stability Account (EPSA). Voluntary contributions are after-tax contributions and cannot be funded by the employer under ORS 238A.335. (a) An election to make voluntary contributions must be submitted using PERS Online Member Services or forms provided by PERS. (b) The election applies to all PERS salary paid to the member. (c) Voluntary contributions will be withheld from the member’s pay as of the voluntary contribution effective date and, except as provided in subsection (d) of this section, will be prospective only. (d) A member may elect to make retroactive voluntary contributions for the period July 1, 2020 to October 1, 2020, only if: (A) The election is received by PERS before November 1, 2020; and (B) The election is made using PERS Online Member Services. (3) A member may discontinue an election to make voluntary contributions by submitting the request through PERS Online Member Services or forms provided by PERS. If a member discontinues an election, the discontinuance becomes effective on the voluntary contribution stop date. (4) When a member elects to make voluntary contributions, the participating employer(s) with which the member is employed in a qualifying position shall assume the member meets the voluntary contribution requirements and begin withholding those contributions from the member’s salary paid as of the voluntary contribution effective date. In the event a member does not meet the eligibility requirement in any month, any voluntary contributions withheld from the member’s salary will be refunded by the employer to the member. (5) When a member elects to make voluntary contributions, or to discontinue an election, PERS will timely notify all employers with which the member is employed in a qualifying position of the member’s election or request. (6) PERS will invoice employers in arrears after it determines a member meets the salary threshold under ORS 238A.330 triggering contributions being credited to EPSA accounts. (7) Voluntary contributions will be deposited into the member’s IAP employee account and invested as described in OAR 459-080-0015. (8) Refunds. If a member’s account is adjusted and a refund of voluntary contributions is owed to the member, the employer will receive a credit on their account and the employer will be responsible for refunding the contributions to the member.