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 262
A-Engrossed
House Bill 2397
Ordered by the House May 10
Including House Amendments dated May 10
Sponsored by Representative KOMP; Representative HUNT (Presession
filed.)
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.
Allows Public Employees Retirement Board to accept rollover
contributions from retired member solely for purpose of paying
amounts claimed by board as overpayments or other improperly made
payments.
{ + Allows beneficiary, by reason of death of member, to have
distribution of death benefit paid as eligible rollover
distribution to individual retirement plan or individual
retirement annuity.
Allows beneficiary, by reason of death of state employee
participating in deferred compensation plan, to have distribution
of deferred compensation benefit paid as eligible rollover
distribution to individual retirement plan or individual
retirement annuity. + }
A BILL FOR AN ACT
Relating to rollover contributions.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2007 Act is added to and made
a part of ORS chapter 238. + }
SECTION 2. { + (1) The Public Employees Retirement Board may
accept rollover contributions from a retired member solely for
the purpose of paying amounts claimed by the board as
overpayments or other improperly made payments. The board may
accept rollover contributions under this section only if the
amounts contributed qualify for pretax rollover treatment under
the federal income tax laws governing qualified retirement plans.
(2) If the board accepts a rollover contribution under this
section, the contribution shall be paid into the Public Employees
Retirement Fund and credited against the amounts claimed by the
board as overpayments or other improperly made payments.
(3) The board shall adopt rules and establish procedures for
determining whether a retired member will be allowed to make a
rollover contribution under this section. Rules and procedures
adopted by the board must ensure that the rollover contributions
do not adversely affect the status of the Public Employees
Retirement System and the Public Employees Retirement Fund as a
qualified governmental plan and trust under federal income tax
law. + }
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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