74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 790-1
 
                         House Bill 2286
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for Public Employees Retirement System)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Provides that payments to alternate payee under deferred
compensation plan may commence earlier than date employee would
be eligible to receive payments under plan. Modifies provisions
for tax reporting for payment of deferred compensation to
alternate payee.
 
                        A BILL FOR AN ACT
Relating to deferred compensation; amending ORS 243.507.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 243.507 is amended to read:
  243.507. (1) Notwithstanding any other provision of law,
deferred compensation under a deferred compensation plan that
would otherwise be paid by a public employer to an eligible
employee shall be paid, in whole or in part, to an alternate
payee if and to the extent expressly provided for in the terms of
any judgment of annulment or dissolution of marriage or of
separation, or the terms of any court order or court-approved
property settlement agreement incident to any judgment of
annulment or dissolution of marriage or of separation. Any
payment under this subsection to an alternate payee bars recovery
by any other person.
  (2) A judgment, order or agreement providing for payment to an
alternate payee under subsection (1) of this section may also
provide:
  (a) That payments to the alternate payee may commence
 { - on - }  { +  earlier than + } the date the employee
 { - separates from service or at such later date as may be
allowed - }  { +  would be eligible to receive payments + } under
the provisions of the deferred compensation plan.
  (b) That the alternate payee may elect to receive payment in
any manner available to the employee under the deferred
compensation plan, without regard to the form of payment elected
by the employee.
  (c) That the alternate payee's life is the measuring life for
the purposes of measuring payments to the alternate payee under
the form of payment selected by the alternate payee.
  (d) That all or a portion of the deferred compensation account
of the eligible employee be segregated in an account in the name
of and for the benefit of the alternate payee, and that the
alternate payee have the same rights and privileges as an
eligible employee only concerning the investment or deposit of
funds under the deferred compensation plan.
  (3) Subsection (1) of this section applies only to payments of
deferred compensation made after the date of receipt by the
administrator of the deferred compensation plan of written notice
of the judgment, order or agreement and such additional
information and documentation as the plan administrator may
prescribe.
  (4) { + (a) + } Payment of all or any part of deferred
compensation to an alternate payee   { - under this section - }
 { +  who is a child or dependent of the employee + } shall be
reported for state and federal income tax purposes as payment to
the eligible employee. Any amount required to be withheld for
state or federal income tax purposes shall be withheld from the
payment to the alternate payee.
   { +  (b) Payment of all or any part of deferred compensation
to an alternate payee who is the spouse or former spouse of the
employee shall be reported for state and federal income tax
purposes as payment to the alternate payee. Any amount required
to be withheld for state or federal income tax purposes shall be
withheld from the payment to the alternate payee. + }
  (5) If an eligible employee transfers from a deferred
compensation plan of a public employer to a deferred compensation
plan established by another public employer, the new employer is
not required to accept as part of the transfer any portion of the
eligible employee's account with the former employer that is
subject to judgment, order or agreement requiring payment of that
portion of the eligible employee's account to an alternate payee.
  (6) If an eligible employee transfers from a deferred
compensation plan of a public employer to a deferred compensation
plan established by another public employer, the employee's
previous employer shall not transfer to the plan established by
the new employer any portion of the eligible employee's account
that is subject to a judgment, order or agreement requiring
payment of that portion of the eligible employee's account to an
alternate payee.
  (7) The Public Employees Retirement Board, or the plan
administrator for any local government deferred compensation
plan, may adopt rules, policies or other regulations for the
purpose of maintaining compliance of a deferred compensation plan
with section 457 of the Internal Revenue Code or any other
provision of federal law that affects the tax qualification of a
deferred compensation plan. Rules, policies or other regulations
adopted under this subsection may vary from the express language
of this section if the rules, policies or other regulations are
required for the purpose of maintaining compliance of a deferred
compensation plan with section 457 of the Internal Revenue Code
or any other provision of federal law that affects the tax
qualification of a deferred compensation plan.
  (8) Any public employer or deferred compensation plan that is
required by the provisions of this section to make a payment to
an alternate payee shall charge and collect out of the deferred
compensation payable to the eligible employee and the alternate
payee actual and reasonable administrative expenses and related
costs incurred by the public employer or deferred compensation
plan in obtaining data and making calculations that are necessary
by reason of the provisions of this section. A public employer or
deferred compensation plan may not charge more than $300 for
total administrative expenses and related costs incurred in
obtaining data or making calculations that are necessary by
reason of the provisions of this section. A public employer or
deferred compensation plan that charges and collects
administrative expenses and related costs under the provisions of
this subsection shall allocate those expenses and costs between
the eligible employee and the alternate payee based on the
fraction of the benefit received by the member or alternate
payee.
  (9) As used in this section:
  (a) 'Alternate payee' means a spouse, former spouse, child or
other dependent of a member.
  (b) 'Court' means any court of appropriate jurisdiction of this
or any other state or of the District of Columbia.
  (c) 'Eligible employee' means a state plan participant or local
plan participant.
  (d) 'Public employer' means the state or a local government
that establishes a deferred compensation plan.
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