74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
HA to HB 2397
 
LC 262/HB 2397-5
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 2397
 
               By COMMITTEE ON BUSINESS AND LABOR
 
                             May 10
 
  After line 18 of the printed bill, insert:
  '  { +  SECTION 3. + }  { + Section 4 of this 2007 Act is added
to and made a part of ORS chapter 238. + }
  '  { +  SECTION 4. + }  { + (1) If a benefit is payable under
this chapter to a beneficiary by reason of the death of a member
of the system, the beneficiary may elect to have all or part of
the distribution of the death benefit paid in an eligible
rollover distribution to an individual retirement plan described
in 26 U.S.C. 408(a), or an individual retirement annuity, other
than an endowment contract, described in 26 U.S.C. 408(b), if the
plan or annuity is:
  ' (a) Established for the purpose of receiving the eligible
rollover distribution on behalf of the designated beneficiary;
and
  ' (b) Treated as an inherited individual retirement account or
individual retirement annuity for federal tax purposes.
  ' (2) Subsection (1) of this section applies to an eligible
rollover distribution of death benefits to a beneficiary who is
not treated as the spouse of the decedent for federal tax
purposes and who is the decedent's designated beneficiary for the
purposes of the minimum required distribution requirements of 26
U.S.C. 401(a)(9). To the extent provided by rules of the Public
Employees Retirement Board, a trust maintained for the benefit of
one or more beneficiaries must be treated by the board in the
same manner as a trust that is designated as a beneficiary for
the purposes of the minimum required distribution requirements of
26 U.S.C. 401(a)(9).
  ' (3) As used in this section, 'eligible rollover distribution'
means a distribution of any death benefit payable to the
designated beneficiary of a deceased member under this chapter by
a series of substantially equal periodic payments made at least
annually for the life or life expectancy of the distributee, or
for the joint lives or life expectancies of the distributee and a
designated beneficiary, that satisfies the requirements of 26
U.S.C. 402(c)(4). To the extent consistent with 26 U.S.C. 402(c),
the board by rule may specify distributions of death benefits
that are not eligible rollover contributions for the purposes of
this section. + }
  '  { +  SECTION 5. + }  { + Section 6 of this 2007 Act is added
to and made a part of ORS chapter 238A. + }
  '  { +  SECTION 6. + }  { + (1) If a benefit is payable under
this chapter to a beneficiary by reason of the death of a member
of the system, the beneficiary may elect to have all or part of
the distribution of the death benefit paid in an eligible
rollover distribution to an individual retirement plan described
in 26 U.S.C. 408(a), or an individual retirement annuity, other
than an endowment contract, described in 26 U.S.C. 408(b), if the
plan or annuity is:
 
 
  ' (a) Established for the purpose of receiving the eligible
rollover distribution on behalf of the designated beneficiary;
and
  ' (b) Treated as an inherited individual retirement account or
individual retirement annuity for federal tax purposes.
  ' (2) Subsection (1) of this section applies to an eligible
rollover distribution of death benefits to a beneficiary who is
not treated as the spouse of the decedent for federal tax
purposes and who is the decedent's designated beneficiary for the
purposes of the minimum required distribution requirements of 26
U.S.C.  section 401(a)(9). To the extent provided by rules of the
Public Employees Retirement Board, a trust maintained for the
benefit of one or more beneficiaries must be treated by the board
in the same manner as a trust that is designated as a beneficiary
for the purposes of the minimum required distribution
requirements of 26 U.S.C. 401(a)(9).
  ' (3) As used in this section, 'eligible rollover distribution'
means a distribution of any death benefit payable to the
designated beneficiary of a deceased member under this chapter by
a series of substantially equal periodic payments made at least
annually for the life or life expectancy of the distributee, or
for the joint lives or life expectancies of the distributee and a
designated beneficiary, that satisfies the requirements of 26
U.S.C. 402(c)(4). To the extent consistent with 26 U.S.C. 402(c),
the board by rule may specify distributions of death benefits
that are not eligible rollover contributions for the purposes of
this section. + }
  '  { +  SECTION 7. + }  { + Section 8 of this 2007 Act is added
to and made a part of ORS 243.401 to 243.507. + }
  '  { +  SECTION 8. + }  { + (1) If a benefit is payable under
the state deferred compensation plan described in ORS 243.401 to
243.507 to a beneficiary by reason of the death of an eligible
state employee participating in the plan, the beneficiary may
elect to have all or part of the distribution of deferred amounts
paid as an eligible rollover distribution to an individual
retirement plan described in 26 U.S.C. 408(a), or an individual
retirement annuity, other than an endowment contract, described
in 26 U.S.C. 408(b), if the plan or annuity is:
  ' (a) Established for the purpose of receiving the eligible
rollover distribution on behalf of the designated beneficiary;
and
  ' (b) Treated as an inherited individual retirement account or
individual retirement annuity for federal tax purposes.
  ' (2) Subsection (1) of this section applies to an eligible
rollover distribution of deferred amounts to a beneficiary who is
not treated as the spouse of the decedent for federal tax
purposes and who is the decedent's designated beneficiary for the
purposes of the minimum required distribution requirements of 26
U.S.C. 401(a)(9). To the extent provided by rules of the Public
Employees Retirement Board, a trust maintained for the benefit of
one or more beneficiaries must be treated by the board in the
same manner as a trust that is designated as a beneficiary for
the purposes of the minimum required distribution requirements of
26 U.S.C. 401(a)(9).
  ' (3) As used in this section, 'eligible rollover distribution'
means a distribution of any deferred amount payable to the
designated beneficiary of a deceased member under ORS 243.401 to
243.507 by a series of substantially equal periodic payments made
at least annually for the life or life expectancy of the
distributee, or for the joint lives or life expectancies of the
distributee and a designated beneficiary, that satisfies the
requirements of 26 U.S.C. 402(c)(4). To the extent consistent
with 26 U.S.C. 402(c), the board by rule may specify
distributions of deferred amounts that are not eligible rollover
contributions for the purposes of this section. + } ' .
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