OAR 643-001-0020: IRS Retirement “Pick Up”

(1) The commission shall designate any employee contribution to the Public Employees Retirement System from the employee’s salary as the employer’s contribution, thus “picking up” its employees’ PERS contributions for purposes of Internal Revenue Code 26 USC § 414(h)(2). (2) The contribution shall be deducted directly from each employee’s wages or salary so that the employees do not have the option of receiving their contributions as wages or salary and making the contribution to PERS themselves. (3) Commission employees’ salaries, as reported for tax purposes on their W-2 forms, shall be reduced by the amount of the PERS contributions.