74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 2397
Sponsored by Representative KOMP; Representative HUNT (Presession
filed.)
CHAPTER ................
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 established for the purpose of receiving the eligible
rollover distribution on behalf of the designated beneficiary.
(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
Enrolled House Bill 2397 (HB 2397-B) Page 1
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'
has the meaning given that term in 26 U.S.C. 402(c)(4), as in
effect on the effective date of this 2007 Act. + }
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 established for the purpose of receiving the eligible
rollover distribution on behalf of the designated beneficiary.
(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'
has the meaning given that term in 26 U.S.C. 402(c)(4), as in
effect on the effective date of this 2007 Act. + }
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 established for the
purpose of receiving the eligible rollover distribution on behalf
of the designated beneficiary.
(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'
has the meaning given that term in 26 U.S.C. 402(c)(4), as in
effect on the effective date of this 2007 Act. + }
Enrolled House Bill 2397 (HB 2397-B) Page 2
SECTION 9. { + Section 10 of this 2007 Act is added to and
made a part of ORS chapter 238. + }
SECTION 10. { + (1) A member of the system described in
subsection (5) of this section who participates in the state
deferred compensation plan under ORS 243.401 to 243.507 may give
written notice to the Public Employees Retirement Board
requesting that payment of all or part of the deferred amount be
made to the board for the purpose of acquiring creditable service
under ORS 238.115 and 238.125. Written notice under this section
must be given no later than 60 days after the effective date of
this 2007 Act. Upon receiving the notice, the board shall
immediately take any action necessary to effectuate the transfer
of the requested amount. The board may not make the amount
available to the member, and shall use the amount only for the
purposes described in this section. The amount transferred under
this section may not exceed the amount needed to:
(a) Make the lump sum payment described in ORS 238.115
(1)(a)(B) that is required to restore forfeited creditable
service for which the member is eligible at the time of the
transfer; and
(b) Make the lump sum payment described in ORS 238.125
necessary to acquire retirement credit under ORS 238.125.
(2) Notwithstanding ORS 238.220, moneys transferred under this
section may be used to restore forfeited creditable service under
ORS 238.115 (1) in the manner provided by this section.
Notwithstanding ORS 238.115 (1)(a), the amount transferred under
this section must be applied to the restoration of forfeited
creditable service under ORS 238.115 (1) immediately after the
transfer is made.
(3) If a member does not obtain restoration of all forfeited
creditable service by reason of the payment under subsection (2)
of this section, the member may obtain restoration of any
remaining forfeited creditable service by making the application
required by ORS 238.115 (1)(a)(A), and the lump sum payment
required by ORS 238.115 (1)(a)(B), within 90 days before the
effective date of retirement of the member.
(4) Notwithstanding ORS 238.220, moneys transferred under this
section may be used to acquire retirement credit under ORS
238.125 in the manner provided by this section. Notwithstanding
ORS 238.125, the amount transferred under this section must be
applied to acquisition of retirement credit under ORS 238.125
immediately after the transfer is made.
(5) A member may give written notice under subsection (1) of
this section only if:
(a) The member is 60 years of age or older; and
(b) The member will have 35 years or more of creditable service
after restoration of forfeited creditable service under ORS
238.115 (1), and acquisition of retirement credit under ORS
238.125, by reason of the transfer and application of amounts
under this section. + }
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Enrolled House Bill 2397 (HB 2397-B) Page 3
Passed by House May 15, 2007
Repassed by House June 8, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 7, 2007
...........................................................
President of Senate
Enrolled House Bill 2397 (HB 2397-B) Page 4
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 2397 (HB 2397-B) Page 5