The Oregon Public Employees Retirement System (PERS) is governed by specific statutes and administrative rules. When considering the impact of a public employee’s separation from service on their retirement benefits, particularly concerning eligibility for a service retirement allowance, the concept of “break in service” is paramount. A break in service for PERS purposes typically means a period of absence from covered employment that meets certain statutory criteria. For a member to be considered to have a break in service that would affect their creditable service accumulation, they must have been separated from all covered employment for a continuous period of at least 12 consecutive months. This separation must be voluntary or for reasons other than retirement. If a member returns to covered employment with a participating employer after such a break, their prior creditable service may be treated differently depending on whether they withdrew their accumulated contributions. However, the fundamental trigger for a break in service, as defined by Oregon law for the purpose of potentially impacting benefit calculations or eligibility, is the continuous 12-month separation from all covered employment. This is distinct from other types of leaves or temporary interruptions that do not meet this statutory threshold. The specific rules are found within Oregon Revised Statutes (ORS) Chapter 238 and related administrative rules.

The Public Employees Retirement System (PERS) in Oregon operates under specific rules regarding the treatment of service time for members. For a member to receive full credit for a period of employment, the employee must have been actively employed and contributing to PERS for at least six full calendar months within a fiscal year. A fiscal year in Oregon typically runs from July 1st to June 30th. If a member separates from service and then returns, the re-employment must also meet certain criteria to “bridge” or combine prior service. In this scenario, Ms. Aris was employed from January 1, 2022, to June 30, 2022, which constitutes six full calendar months of active employment and contributions within the 2021-2023 fiscal year (which began July 1, 2021, and ended June 30, 2023). Therefore, this period of service would qualify for one year of service credit under PERS rules, assuming all other contribution and eligibility requirements are met. The key is the attainment of six full calendar months of active service and contributions within a single fiscal year.

The Oregon Public Employees Retirement System (PERS) governs retirement benefits for public employees in Oregon. When a member of the Oregon Public Employees Retirement System (PERS) separates from service, their retirement benefit calculation is based on specific factors defined by Oregon law. These factors include the member’s final average salary (FAS), the number of years of creditable service, and the applicable retirement formula. For members who participate in the “Formula 88” plan, the retirement benefit is calculated by multiplying the FAS by a service credit factor. The FAS is typically the average of the member’s highest salary periods, as defined by statute. The service credit factor is determined by the member’s years of creditable service and their age at retirement, with specific multipliers applied for different age and service combinations. For instance, a member retiring at age 65 with 30 years of service under Formula 88 would have a specific percentage applied to their FAS. The law also details provisions for early retirement, disability retirement, and death benefits, each with its own calculation methodologies and eligibility criteria. Understanding these components is crucial for accurately determining a member’s retirement income.

The Oregon Public Employees Retirement System (PERS) offers various retirement plans, including the Defined Benefit (DB) plan and the Defined Contribution (DC) plan, which is often referred to as the Money Match program. For Tier 1 and Tier 2 members, the pension benefit is calculated based on a formula that considers final average salary (FAS), years of credited service (YCS), and a multiplier. The multiplier for Tier 1 members is typically 1.5% for general service, and for Tier 2, it is 1.5% for general service and 1.8% for police and fire. The FAS is generally the average of the highest consecutive 36 months of salary. The calculation is as follows: Pension Benefit = FAS \* YCS \* Multiplier. For example, a Tier 1 member with a final average salary of $70,000 and 30 years of credited service would have an annual pension benefit of: Pension Benefit = $70,000 \* 30 \* 0.015 = $31,500. The question asks about the implications of a PERS member electing to transfer their accrued benefits from a previous employer’s qualified plan to their PERS account under ORS 238.375. This statute governs the transfer of service credit for members who move from non-PERS public employment within Oregon to PERS-covered employment. The statute allows for the transfer of “service credit” if the member establishes a PERS account and makes a lump-sum payment or a series of payments equivalent to the actuarial cost of the service credit being transferred, as determined by the PERS actuary. This transfer is crucial for increasing the member’s total years of credited service under PERS, which directly impacts their future pension benefit calculation. The transfer does not alter the fundamental calculation of the pension benefit itself (FAS \* YCS \* Multiplier) but rather increases the YCS component of that calculation. It is a mechanism to recognize prior public service within Oregon for retirement benefit purposes under the PERS system. The other options describe outcomes that are not directly or solely addressed by ORS 238.375, such as the immediate cessation of contributions to the prior plan (which is a consequence of leaving that employer, not the transfer statute itself), or the automatic conversion of a defined contribution plan to a defined benefit plan, which is not what ORS 238.375 facilitates. The statute’s primary function is to enable the purchase of service credit.

The Oregon Public Employees Retirement System (PERS) is governed by specific statutes and administrative rules. When an employee of a participating public employer in Oregon separates from service, the treatment of their accumulated contributions and any potential benefits is determined by their status within the PERS system and the terms of their separation. For a member who is not yet eligible for retirement benefits but has accumulated contributions, the primary options upon separation are to leave the contributions with PERS to accrue service credit and potential future benefits, or to withdraw those contributions. Withdrawing contributions typically results in the forfeiture of any future rights to a PERS retirement benefit based on that service. The law generally requires that if a member withdraws their contributions, they receive the full amount of their accumulated contributions plus any interest earned, as per the PERS statutes. The question posits a scenario where a member separates from service and has not yet reached retirement age or met service credit requirements for a retirement allowance. The member chooses to withdraw their contributions. Under Oregon law governing PERS, a member who withdraws their contributions forfeits all rights to future benefits derived from that service. The amount they receive is their accumulated contributions plus any credited interest. This is a fundamental aspect of defined benefit pension plans like PERS; contributions are not simply a savings account but represent a claim on a future benefit stream that is relinquished upon withdrawal. Therefore, the correct action is to receive the accumulated contributions plus credited interest.

The Oregon Public Employees Retirement System (PERS) is governed by specific statutes and administrative rules. When a public employer in Oregon, such as a city or county, establishes a retirement plan that provides benefits comparable to those offered by PERS, the law allows for certain options regarding participation. Specifically, ORS 238.015 outlines the conditions under which a public employer may elect to become a participating employer in PERS. This statute, along with related administrative rules, permits a public employer to choose to cover its employees under PERS, or in some circumstances, to establish an alternative plan if it meets specific comparability standards. The core principle is that if an employer’s plan is deemed equivalent in value and scope to the benefits provided by PERS, the employer may be exempt from mandatory PERS participation for those employees, provided certain conditions are met, including adherence to statutory requirements for plan establishment and ongoing administration. This allows for flexibility while ensuring public employees receive adequate retirement security. The question hinges on the statutory allowance for alternative plans that are demonstrably comparable to PERS benefits, as provided under Oregon law.

The Public Employees Retirement System (PERS) in Oregon governs the retirement benefits for public employees. A key aspect of its administration involves understanding the treatment of service credit, particularly when an employee moves between different public employers within Oregon or from a non-PERS employer to a PERS-covered position. The Oregon Revised Statutes (ORS) Chapter 731 and related administrative rules by the Oregon Department of Consumer and Business Services (DCBS) and PERS itself outline these provisions. When a member of the Oregon Public Employees Retirement System (PERS) becomes an employee of a non-PERS public employer in Oregon, and subsequently returns to a PERS-covered position, the rules for re-establishing service credit depend on the nature of the separation and the duration of the break in PERS-covered service. If the employee did not receive a refund of their accumulated contributions upon leaving the PERS-covered employment, and the period between the non-PERS public employment and the return to PERS-covered employment is not excessively long, it is generally possible to re-establish service credit. However, if a refund was taken, the employee must typically “buy back” the service credit. The specific provisions for this buy-back are detailed in ORS 238.145, which addresses the purchase of service credit. This statute allows former members to purchase service credit for periods of public employment in Oregon for which they did not receive a refund of contributions, or for periods of employment with a non-PERS public employer in Oregon if certain conditions are met, including making a payment to the system. The payment is typically calculated based on the employee’s salary and the contribution rates in effect during the period being purchased, plus interest. The ability to purchase service credit for periods of employment with a non-PERS public employer in Oregon, and the subsequent integration of this credit into the PERS retirement calculation, is a crucial benefit that ensures continuity of retirement benefits for public servants who move between different public sector entities within the state. The statute does not require the employee to have been a member of PERS for a minimum number of years before the non-PERS employment to be eligible for this purchase, but it does require the non-PERS employment to be with a public employer within Oregon. The core principle is to allow individuals to consolidate their public service for retirement purposes, provided they meet the statutory requirements for purchasing such credit.

The Oregon Public Employees Retirement System (PERS) is governed by specific statutes and administrative rules that dictate its operations, including the handling of member accounts and benefit calculations. When a member separates from service and is eligible for a retirement benefit, PERS has established procedures for managing these accounts. A member who has accrued a vested retirement benefit but has not yet reached the age to commence receiving that benefit may elect to leave their accumulated contributions and any employer contributions in the PERS system. During this period of deferral, the member’s account continues to accrue interest or earnings based on the investment performance of the retirement fund, as determined by PERS investment policies and state law. The specific rate of return is not a fixed percentage but is tied to the actual performance of the fund’s assets. Upon reaching the eligible retirement age, the member can then elect to begin receiving their pension benefit, which will be calculated based on their final average salary, years of service, and the applicable benefit formula at the time of retirement, as well as any accumulated earnings on their deferred account. The question revolves around the disposition of contributions and earnings for a deferred vested member in Oregon. The law specifies that contributions remain in the system and continue to accrue earnings.

The Oregon Public Employees Retirement System (PERS) Board has established rules and guidelines for the administration of retirement benefits. Specifically, regarding the crediting of service for members who have prior service with other public employers in Oregon, ORS 238.320 outlines the conditions for transferring such service. For a member to receive credit for service rendered to a participating public employer in Oregon prior to their PERS membership, they must have been employed in a position that was covered by the Public Employees Retirement System at the time of that prior service. Furthermore, the member must have made contributions to PERS for that period of service. The law also requires that the member must have been an employee of a public employer that was participating in PERS at the time the service was rendered. If these conditions are met, the member is entitled to the same creditable service that they would have received had they remained continuously employed with that original public employer. This ensures that public employees in Oregon are not penalized for moving between participating public entities within the state. The calculation for creditable service in such a transfer is generally a direct conversion of the period of eligible employment, provided all statutory requirements are met. For instance, if an individual worked for a city that was a PERS employer for 5 years before moving to a county that is also a PERS employer, and they made contributions for both periods, they would receive 5 years of creditable service from their city employment. The key is the continuous participation of the employer in PERS and the member’s contributions during the period of service.

The Oregon Public Employees Retirement System (PERS) administers retirement, disability, and death benefits for eligible public employees in Oregon. The Oregon Government Ethics Commission (OGEC) oversees ethical conduct for public officials and employees, including provisions related to post-employment restrictions. Specifically, ORS 244.090 addresses limitations on former public officials and employees accepting employment or compensation that would exploit their prior governmental position or involve direct and substantial participation in matters they were directly and substantially involved in while in public service. This statute aims to prevent the appearance or reality of impropriety and the misuse of public trust. When a former PERS board member seeks employment with a private entity that actively lobbies PERS on matters of investment policy or benefit administration, the OGEC’s regulations under ORS 244.090 would be the primary authority to consult. The question hinges on whether the proposed employment violates these post-employment restrictions. The OGEC has the authority to investigate and enforce these provisions. Therefore, the correct course of action involves consulting the OGEC for guidance on the applicability of these restrictions to the specific circumstances of the former board member’s proposed employment.

The Oregon Public Employees Retirement System (PERS) provides retirement, disability, and death benefits to eligible public employees in Oregon. Understanding the distinction between “final average salary” and “final salary” is crucial for calculating these benefits. Final average salary typically refers to the average of an employee’s salary over a specified period, often the highest consecutive months or years of service, as defined by the PERS statutes. Final salary, on the other hand, is generally understood as the salary earned in the last year of employment or a similarly short, defined period. The calculation of a retirement benefit under PERS often involves multiplying a member’s years of service by a percentage factor, which is itself derived from the member’s final average salary. For instance, a member retiring with 30 years of service and a final average salary of $75,000 might have their pension calculated using a formula that incorporates this average. The specific statutes, such as ORS Chapter 238, govern these definitions and calculations. The complexity arises in situations where an employee’s compensation structure may include various forms of remuneration, and determining what constitutes “salary” for the purpose of averaging requires careful adherence to PERS administrative rules and relevant case law. The question tests the foundational understanding of how these salary metrics are used in benefit determination, highlighting the critical role of the averaged salary figure in actuarial calculations and individual benefit payouts. The correct answer reflects the statutory definition and practical application of final average salary in the PERS benefit calculation framework.

The scenario involves a public employee in Oregon who participated in the Public Employees Retirement System (PERS) and subsequently became employed by a private entity that offers a 401(k) plan. The question probes the rules regarding the rollover of PERS funds into a private 401(k) plan. Oregon PERS, governed by ORS Chapter 238, generally prohibits the direct rollover of funds from a defined benefit pension plan into a private sector defined contribution plan, such as a 401(k), due to differences in regulatory frameworks (ERISA for private plans vs. state statutes for PERS) and benefit structures. While lump-sum distributions from PERS might be permitted under certain separation conditions, these funds are typically intended to be taken as a pension benefit or rolled over into another eligible governmental plan, not a private sector 401(k). The concept of “direct rollover” is crucial here, referring to the transfer of funds directly from the trustee of the distributing plan to the trustee of the receiving plan. Indirect rollovers, where the participant receives the distribution and then deposits it into another plan, are subject to mandatory withholding and potential penalties if not completed within the statutory 60-day window. However, the fundamental prohibition on direct rollovers from a public pension plan like PERS to a private 401(k) remains. Therefore, the employee cannot directly roll over their PERS account balance into the private employer’s 401(k) plan. The explanation focuses on the legal and regulatory distinctions between public and private retirement plans in Oregon and the federal government, specifically the ineligibility of a PERS defined benefit plan for direct rollover into an ERISA-governed 401(k).

No calculation is required for this question. The scenario tests the understanding of the Oregon Public Employees Retirement System (PERS) rules regarding the definition of “service credit” for members who are also contributing to the Public Employees Retirement Benefit Trust (PERBT) for certain health insurance premium subsidies. Under Oregon Revised Statute (ORS) 238.355, service credit is generally earned for periods of employment for which contributions are made to PERS, or for periods of authorized leave. However, ORS 238.355(1)(a) specifically states that service credit is not earned for periods for which a member receives a health insurance premium subsidy from the Public Employees Retirement Benefit Trust if the member is not otherwise employed by a PERS employer. This distinction is crucial because the PERBT subsidies are intended to offset health insurance costs for retirees, not to serve as a substitute for active employment or a basis for earning retirement service credit when not actively employed by a contributing employer. Therefore, receiving a PERBT subsidy while not actively employed by a PERS employer does not grant service credit.

The Oregon Public Employees Retirement System (PERS) has specific rules regarding the treatment of service purchases. When a member of the PERS system wishes to purchase service credit for periods of employment that occurred prior to their participation in the system, or for other qualifying periods, the cost of such a purchase is determined by actuarial valuation. This valuation considers the member’s age, salary, and the projected benefits associated with that service. The Oregon Revised Statutes (ORS) and administrative rules governing PERS provide the framework for these calculations. Specifically, ORS 238.375 outlines the process for purchasing service credit. The cost is calculated to ensure that the purchase is neutral to the overall financial health of the retirement system. This means the system should neither gain nor lose financially due to the service purchase. The calculation typically involves determining the present value of the future benefit attributable to the service being purchased, offset by any contributions already made by the member or employer for that period. The result is the member’s cost. For example, if a member’s projected benefit increase due to purchasing a year of service is calculated to have a present value of $10,000, and they have already contributed $2,000 towards it through a prior arrangement or a different plan that can be recognized, their cost to purchase that year would be $8,000. This ensures the actuarial soundness of the fund.

The Oregon Public Employees Retirement System (PERS) governs the retirement benefits for public employees in Oregon. A key aspect of PERS is the definition of “service credit,” which is crucial for calculating retirement allowances. Service credit is generally earned for periods of employment for which contributions are made to the PERS system, or for periods of approved leave. ORS 238.145 outlines the conditions under which a member can purchase additional service credit. This includes periods of public employment in Oregon for which the member did not make contributions, provided certain conditions are met, such as the employer having the option to join PERS at the time of service and the member not receiving retirement benefits from another Oregon public employer for the same service. The calculation of the cost to purchase this credit is based on the member’s salary during the period of service, the member’s age at the time of purchase, and the employer’s contribution rate. The formula typically involves actuarial factors to account for the present value of future benefits. For instance, if a member wishes to purchase 2 years of prior service where their salary was \$40,000 per year, and they are currently 55 years old, the cost would be determined by actuarial tables provided by PERS, reflecting their age and the prevailing employer contribution rates at the time of purchase. The specific calculation is complex and actuarially determined, not a simple percentage of salary. The question tests the understanding of the *conditions* for purchasing service credit under Oregon law, specifically concerning prior public employment within Oregon. ORS 238.145(2)(a) explicitly states that a member may purchase service credit for periods of public employment in Oregon for which contributions were not made, provided the employer had the option to join PERS at that time and the member is not receiving retirement benefits for that service from another Oregon public employer. The scenario provided meets these criteria: the service was in Oregon public employment, contributions were not made, the employer was eligible to join PERS, and the individual is not receiving other benefits for this service. Therefore, the ability to purchase this service credit is permissible under Oregon law.

The Oregon Public Employees Retirement System (PERS) provides retirement, disability, and death benefits to eligible public employees in Oregon. Under ORS 238.350, certain employers participating in PERS are required to make employer contributions. These contributions are calculated as a percentage of the employee’s salary. For the fiscal year 2023-2024, the assumed rate of return for the system was 7.35%. This rate is a critical factor in actuarial valuations and in determining the required employer contribution rates to ensure the system’s long-term solvency. The employer contribution rate is not a fixed percentage but is determined through actuarial valuations that consider factors such as investment performance, member demographics, and benefit levels. The Oregon Legislature, through the Public Employees Benefit Board (PEBB) and PERS Board, establishes these rates. The specific rate for a given employer is influenced by the collective experience of the entire system and the employer’s own participation group. Therefore, while the assumed rate of return is a foundational element for actuarial calculations, the actual employer contribution rate is a complex outcome of these valuations.

The Oregon Public Employees Retirement System (PERS) governs retirement benefits for public employees in Oregon. A key aspect of PERS is the determination of “service credit,” which is crucial for calculating retirement allowances. Service credit is generally earned for periods of employment with participating public employers. However, specific rules apply to different types of employment and contributions. For instance, Oregon Revised Statute (ORS) 238.145 addresses the purchase of service credit for periods of employment where the employee did not make mandatory contributions. This statute outlines the conditions under which an employee can buy back service credit, often requiring the employee to pay both the employee and employer contributions for that period, plus interest. The interest rate is typically set by the PERS board and is designed to reflect the time value of money and the system’s actuarial needs. This buyback provision allows members to enhance their retirement benefits by accounting for past service that might otherwise be excluded. The calculation involves determining the contributions that would have been made based on the salary during that period and applying the prescribed interest rate from the date contributions would have been due until the date of payment. For example, if an employee worked for 12 months in 2005 and earned \( \$3,000 \) per month, with a hypothetical combined contribution rate of \( 10\% \) and an interest rate of \( 6\% \) compounded annually, the calculation for buying back that service credit would involve: 1. Calculating the total contributions: \( 12 \text{ months} \times \$3,000/\text{month} \times 10\% = \$3,600 \). 2. Calculating the accumulated interest. If the buyback occurs in 2024, the interest would accrue from 2005 to 2024, which is 19 years. The formula for compound interest is \( P(1+r)^n \), where P is the principal, r is the annual interest rate, and n is the number of years. So, the interest amount would be \( \$3,600 \times (1 + 0.06)^{19} – \$3,600 \). This calculation determines the total cost to purchase the service credit. The statute aims to ensure actuarial neutrality by having the employee pay the full cost, including lost earnings for the system, for purchasing such service.

The Oregon Public Employees Retirement System (PERS) has specific rules regarding the calculation of service credit for members who leave and later return to public service. When a member leaves PERS-covered employment and withdraws their accumulated contributions, they forfeit all prior service credit. If such a member is subsequently rehired into a PERS-covered position, they generally have the option to “repurchase” their prior service credit. This repurchase typically involves the member paying back the withdrawn contributions plus a statutorily determined interest rate. The interest rate is designed to reflect the time value of money and the investment experience of the retirement system. Under Oregon Revised Statute (ORS) 238.145, the interest rate for repurchasing withdrawn service credit is set by the PERS Board, based on actuarial recommendations, and is intended to approximate the system’s assumed rate of return. This rate is not a fixed percentage but can be adjusted periodically. The core principle is that the member must make the system whole for the period the funds were withdrawn, ensuring the actuarial soundness of the retirement system. The calculation involves the original withdrawn amount, compounded annually at the established repurchase interest rate from the date of withdrawal until the date of repurchase. For example, if a member withdrew \( \$10,000 \) and the repurchase interest rate was \( 6\% \) compounded annually, and they repurchased after \( 5 \) years, the repurchase cost would be \( \$10,000 \times (1 + 0.06)^5 \approx \$13,382.26 \). This ensures that the service credit granted upon repurchase reflects its actuarial value at the time of repurchase, without imposing an undue burden on the system’s active members or the state. The specific interest rate is crucial for determining the financial obligation of the member to reinstate their full service credit.

The Oregon Public Employees Retirement System (PERS) has specific rules regarding the calculation of retirement benefits for members who have prior service credit from another public employer in Oregon. When a member transfers service credit from another Oregon public employer to PERS, the service is generally recognized as if it were service rendered directly to PERS, provided certain conditions are met, such as the transfer of contributions and earnings. The Oregon Revised Statutes (ORS) Chapter 706 outlines the framework for public retirement systems, and ORS 238.150 specifically addresses the crediting of prior service. If an individual was employed by a participating employer in Oregon and later becomes a member of PERS, and their prior service with the Oregon employer is transferable, that service is typically treated as Oregon service for benefit calculation purposes. This means that the member’s final average salary (FAS) and the multiplier for their retirement formula will be based on PERS rules, and the prior service will be integrated into the overall service credit calculation. For example, if an employee worked for the City of Portland for 5 years and then joins the State of Oregon as a PERS member, and the prior service is transferable under inter-system reciprocity agreements or statutory provisions, those 5 years will be added to their PERS service credit. The benefit calculation would then use the combined service credit. The final average salary would be determined based on the highest consecutive salary periods as defined by PERS. The multiplier applied to this FAS would be the standard PERS multiplier for the member’s retirement plan. The question tests the understanding of how prior service from another Oregon public employer is integrated into a PERS retirement benefit calculation, emphasizing that such service, when properly transferred, is treated as Oregon service.

The Public Employees Retirement System (PERS) of Oregon operates under specific statutes that govern its operations and the benefits provided to its members. A key aspect of PERS administration involves the handling of contributions and the calculation of retirement benefits. When a member of the PERS system becomes eligible for retirement and makes an election regarding their benefit payout, the system must adhere to the statutory provisions for calculating the monthly retirement allowance. This calculation is primarily based on the member’s final average salary, the number of years of creditable service, and the applicable formula multiplier as defined by Oregon Revised Statutes (ORS) Chapter 238. For a Tier 1 member, the formula generally involves multiplying the final average salary by the service credit and then by a percentage factor. For instance, if a Tier 1 member has a final average salary of $70,000 and 30 years of creditable service, and the statutory multiplier for their retirement class is 1.5%, the annual retirement benefit would be calculated as \( \$70,000 \times 30 \times 0.015 \). This yields an annual benefit of $31,500. To determine the monthly allowance, this annual amount is divided by 12. Therefore, the monthly retirement allowance would be $31,500 / 12 = $2,625. This calculation exemplifies the core principle of benefit determination within the Oregon PERS framework, ensuring that benefits are actuarially sound and in compliance with state law. The final average salary is typically the average of the member’s highest earnings over a specified period, usually 36 consecutive months, as defined by ORS 238.005(12). Creditable service encompasses all periods of employment for which contributions were made to the system, as detailed in ORS 238.145. The statutory multiplier varies depending on the member’s retirement plan and service dates, reflecting the long-term financial planning and actuarial assumptions underpinning the system.

The Oregon Public Employees Retirement System (PERS) statutes, specifically ORS 238.395, outline the conditions under which a member who has withdrawn their contributions may re-establish their prior service credit. This re-establishment is contingent upon the member making a full repayment of the withdrawn contributions plus interest. The interest rate is calculated from the date of withdrawal to the date of repayment, at a rate determined by the PERS Board. This rate is typically tied to the actuarial interest rate assumption used by the system, ensuring that the repayment adequately compensates the system for the lost investment growth during the period of withdrawal. Without this repayment, the prior service credit remains forfeited, and the member’s future retirement benefit calculation would not include that period of service. The purpose of this provision is to allow members to regain lost service credit, thereby enhancing their retirement benefits, provided they make the system whole for the financial impact of their withdrawal. This aligns with the broader objective of ensuring the actuarial soundness of the retirement system while offering members flexibility.

The Oregon Public Employees Retirement System (PERS) is governed by specific statutes and administrative rules. When a participating employer, such as a city or county in Oregon, makes a contribution to the retirement account of an employee who is a member of a defined benefit plan, this contribution is considered a service credit purchase if it is for a period not otherwise creditable. Under Oregon law, specifically ORS 238.320, a participating employer may, at its discretion and subject to certain conditions, make a contribution to the retirement account of a member for periods of service that are not otherwise creditable. This is distinct from the employer’s mandatory contributions that fund the defined benefit pension. The question revolves around the legal framework governing employer contributions that are not part of the regular funding of the pension benefit. Such employer-purchased service credit, when made by the employer on behalf of the employee, is a benefit enhancement and is treated differently than an employee’s voluntary purchase of service credit. The key is that the employer is initiating and funding this purchase for a non-creditable period, which is permissible under specific statutory provisions that allow for such employer-initiated service credit purchases to enhance an employee’s retirement benefits, provided the employer’s governing body approves it and it aligns with the PERS statutes. The employer’s contribution for this purpose is not a direct salary payment to the employee but rather a direct contribution to the PERS retirement account to acquire additional creditable service.

The Oregon Public Employees Retirement System (PERS) is governed by specific statutes and administrative rules. When a member of a participating employer dies before retirement, and they have designated beneficiaries, the distribution of benefits is determined by the PERS statutes. Specifically, if a member dies before retirement and has designated a beneficiary who is not their spouse, the benefit payable is the accumulated contributions plus interest. If the designated beneficiary is a spouse, the spouse may elect to receive the benefit as a life annuity or a lump sum of accumulated contributions plus interest. However, the question specifies a non-spouse beneficiary. In such cases, the default distribution under Oregon Revised Statutes (ORS) Chapter 238 is the member’s accumulated contributions with interest. This ensures that the value accrued by the member during their service is passed on to their chosen beneficiary. Other options, such as a lifetime annuity for a non-spouse beneficiary or a benefit calculated based on a specific vesting period without regard to the beneficiary’s status, are not the primary statutory provisions for a non-spouse beneficiary in this pre-retirement death scenario. The focus is on returning the member’s contributions with accrued interest.

The Oregon Public Employees Retirement System (PERS) Board has specific authority regarding the administration and interpretation of the Public Employees Retirement Act of 1953 (PERA). Under ORS 238.630, the Board is empowered to make rules and regulations necessary for the administration of the system. This includes the authority to determine the eligibility of individuals for membership and benefits, and to interpret the provisions of the Act. When there is a dispute or ambiguity concerning a member’s service credit, the Board’s interpretation, as codified in their administrative rules and applied through their adjudicatory processes, carries significant weight. The Board’s decision on such matters, following due process, is generally considered final unless overturned by a court of law. Therefore, the Board’s official interpretation of the PERA, particularly concerning the crediting of service, is the definitive standard for members within the Oregon public employment system.

No calculation is required for this question as it tests understanding of legal principles. The Oregon Public Employees Retirement System (PERS) has specific rules regarding the distribution of retirement benefits upon the death of a member. When a PERS member dies before retirement, the benefit payable depends on whether the member had elected a retirement option and whether they had designated a beneficiary. If the member had not yet retired and had not elected a specific retirement option that would alter the payout in case of death, the benefit generally reverts to a refund of contributions plus interest, payable to a designated beneficiary or, if none, to the member’s estate. However, if the member had already commenced receiving retirement benefits, the payout to a beneficiary would be governed by the specific retirement option chosen by the member prior to retirement. This often involves a joint and survivor option, which continues payments to a named beneficiary for their lifetime, or a period certain option, which guarantees payments for a fixed number of years. The Oregon Revised Statutes (ORS) and administrative rules governing PERS detail these provisions, emphasizing the importance of beneficiary designations and pre-retirement election choices in determining the distribution of benefits. The scenario presented involves a member who passed away before commencing retirement benefits and had not elected a specific option, thus the default distribution applies.

The Oregon Public Employees Retirement System (PERS) offers various retirement plans. For members who began participating on or after January 1, 2007, and before January 1, 2012, they are typically in the “Tier 2” plan. This plan features a formula for calculating the pension benefit that considers the member’s final average salary (FAS) and their years of creditable service. The FAS is generally the average of the member’s highest compensated 36 consecutive months of service. The pension benefit is calculated by multiplying the FAS by a multiplier percentage based on the member’s age at retirement and their years of service. For Tier 2 members retiring with at least 30 years of service, the standard multiplier for a full retirement benefit at age 65 is 1.5% per year of service. Therefore, if a Tier 2 member retires at age 65 with 30 years of creditable service and a final average salary of $72,000, the annual pension benefit would be calculated as follows: \( \text{Annual Pension} = \text{FAS} \times \text{Years of Service} \times \text{Multiplier} \). In this scenario, the multiplier is 1.5% or 0.015. So, the calculation is \( \$72,000 \times 30 \times 0.015 \). This results in \( \$72,000 \times 0.45 = \$32,400 \). This annual amount is then typically paid in monthly installments. The question asks for the monthly pension amount, so the annual amount is divided by 12. \( \$32,400 / 12 = \$2,700 \). The Oregon PERS statutes and administrative rules govern these calculations, ensuring that benefits are actuarially sound and provided according to the terms of the specific tier of membership. Understanding the specific tier and its associated benefit calculation formula is crucial for both members and administrators to accurately project and administer retirement income.

The Oregon Public Employees Retirement System (PERS) has specific rules regarding the calculation of retirement benefits for members who have service with both contributing and non-contributing public employers within Oregon. When a member has periods of service with employers that do not participate in the PERS retirement plan, that service is considered “non-qualifying” for the purpose of calculating a PERS pension. However, under certain circumstances, a member may be able to purchase credit for this non-qualifying service. The ability to purchase this credit, and how it is treated, is governed by Oregon Revised Statutes (ORS) and PERS administrative rules. The core principle is that service with a non-contributing employer, if purchased, is treated as if it were service with a contributing employer for the purpose of calculating the pension benefit, but it does not impact the member’s “final average salary” calculation unless specific conditions are met. The final average salary is typically based on the highest consecutive 36 months of salary earned while the member was an active participant in the retirement system. Service with a non-contributing employer, even if purchased as credit, does not directly contribute to the salary used in the final average salary calculation unless the member also had qualifying service during those same periods that is factored into the calculation. Therefore, the purchased non-qualifying service primarily affects the “years of service” component of the pension formula, not the salary component, unless the purchased service overlaps with qualifying service.

No calculation is required for this question as it tests conceptual understanding of Oregon’s Public Employees Retirement System (PERS) and its interaction with federal law. The Oregon PERS system, governed by ORS Chapter 238, establishes rules for retirement benefits for public employees. However, when a public employee also accrues benefits under a private sector retirement plan, such as a 401(k) or 403(b) plan sponsored by a private employer or a non-profit organization that is not a public employer under ORS Chapter 238, the interaction between these two systems is primarily governed by federal law, specifically the Employee Retirement Income Security Act of 1974 (ERISA), and the Internal Revenue Code (IRC). ERISA sets minimum standards for most voluntarily established retirement plans in private industry to provide protection for individuals in these plans. The IRC dictates rules for qualified retirement plans, including contribution limits and distribution requirements, which apply to both public and private plans but are often administered separately unless specific portability or rollover provisions are utilized. Oregon law primarily governs the administration and funding of the state’s public retirement systems. When a public employee moves to a private sector role and accrues benefits in a different type of plan, the laws of the jurisdiction governing that private plan, along with federal law, would dictate how those benefits are managed, including any potential rollovers or integration with prior public service benefits, if permitted by both systems’ rules. The question focuses on the scenario where a public employee accrues benefits in a private plan, implying a transition or dual participation. In such cases, the private plan’s compliance with ERISA and the IRC is paramount for the employee’s private sector benefits.

The Oregon Public Employees Retirement System (PERS) offers various retirement plans, including the Defined Benefit (DB) plan and the Defined Contribution (DC) plan. For Tier 1 and Tier 2 members, the pension benefit is calculated based on a formula that considers their final average salary (FAS), years of credited service, and a formula factor. The FAS is typically the average of the highest consecutive 36 months of salary. The formula factor for Tier 1 members is generally 1.5% for general service, and for Tier 2 members, it is also 1.5% for general service. The question asks about the calculation of a monthly pension benefit for a hypothetical member. Let’s assume a Tier 1 member with the following characteristics: Final Average Salary (FAS) = $72,000 per year Years of Credited Service = 30 years Formula Factor = 1.5% (or 0.015) The annual pension benefit is calculated as: Annual Pension = FAS * Years of Credited Service * Formula Factor Annual Pension = $72,000 * 30 * 0.015 Annual Pension = $72,000 * 0.45 Annual Pension = $32,400 To find the monthly pension benefit, we divide the annual pension by 12: Monthly Pension = Annual Pension / 12 Monthly Pension = $32,400 / 12 Monthly Pension = $2,700 This calculation illustrates the fundamental method for determining a monthly pension benefit under the PERS DB plan for a Tier 1 member. The specific details of benefit calculation, including the exact definition of FAS and the applicable formula factors, are governed by Oregon Revised Statutes and PERS administrative rules. Understanding these components is crucial for both members and administrators to accurately project and administer retirement benefits. The scenario presented tests the application of these principles in a practical context, requiring knowledge of how different variables interact to produce the final benefit amount. The nuances of different tiers and service types can impact the formula factor, making precise knowledge of the governing statutes essential for accurate calculations and compliance.

The scenario involves a public employee retirement system in Oregon, specifically addressing the implications of a member’s separation from service prior to full vesting and the subsequent re-employment of that individual. Under Oregon’s Public Employees Retirement System (PERS) statutes, specifically ORS 238.145, a member who separates from service before becoming vested is generally entitled to a refund of their accumulated contributions. However, if such a member is subsequently re-employed by a participating public employer and becomes an active member again, they have the option to either repay the refunded contributions with interest or forfeit their prior service credit. The interest rate for repayment is typically determined by PERS administrative rules and is designed to approximate the earnings the refunded contributions would have generated had they remained in the system. In this case, since Elara separated before vesting and received a refund, her prior service credit is extinguished unless she repays the refunded amount plus accrued interest. The question tests the understanding of this specific provision regarding the treatment of refunded contributions upon re-employment in Oregon’s public sector retirement system. The critical element is that without repayment, the prior service credit is lost, and the new service period begins anew for vesting and benefit calculation purposes.