This rule will be used to determine the member's retirement
allowance under the Money Match method provided for in ORS
238.300(2)(b)(A)
for members that are subject to the variable annuity adjustment provided under
ORS 238.260(12). To
calculate these members' retirement allowance, the following process will be
used:
(1)
Annuity
Calculation. The balance in the member's regular account will be
combined with a projected balance based on what the member's variable account
balance would have been had the member's contributions to the variable account
been made to the regular account instead. If the member chooses a retirement
allowance that includes an annuity, this combined balance will be converted to
an annuity using the appropriate actuarial equivalency factor to determine that
annuity.
(2)
Pension
Calculation. The pension provided for in ORS
238.300(2)(b)(A)
will be determined by applying an actuarial equivalency factor to the combined
balance determined in accordance with section (1).
(3)
Variable Adjustment. The
retirement allowance calculated under sections (1) and (2), as applicable, will
be increased or decreased by applying an actuarial equivalency factor to the
difference between the actual balance in the member's variable account on their
effective retirement date and the projected balance determined under section
(1) above.
(4) The provisions of
this rule only apply to members who participated in the variable account
program by making contributions to their variable account on or after January
1, 1982. The adjustment provided for by ORS
238.260(12) and
this rule will apply only to those contributions and associated earnings after
that date.
(5) In determining "the
portion of the annuity payable from the Variable Annuity Account" as required
by ORS 238.260(10) and
(11), all of the member's variable account
will be included, including the portion that is included in calculating the
variable adjustment at retirement specified in ORS
238.260(12).
(6) The method described in this rule to
calculate a member's allowance will also be followed to calculate the
"look-back" benefit as described in section 4 of chapter 68, Oregon Laws 2003
(HB 2004). The difference in value between the member's variable and what those
contributions would have earned in the regular account as of June 30, 2003 will
be used as the basis for the "look-back" comparison.
(7) If a member who has a variable account
elects to transfer that account balance to the regular account under ORS
238.260(14),
the difference between the amount in the variable account (subject to the
limitations in section (4) of this rule) and what that portion of the variable
account would have been had the member instead invested solely in the regular
account shall be determined as of the date of the transfer. That difference
will be applied to the member's regular account as described in section (1) of
this rule and also pursuant to ORS
238.260(12)(b) or
(c) to increase or decrease the member's
retirement allowance.
(8) The
provisions of this rule are effective July 1, 2004.