Oregon Code § 238.260·Enacted ·Last updated March 01, 2026
Statute Text
Variable Annuity Account; rules.
(1) The purpose of this section is to establish a well balanced, broadly
diversified investment program for certain contributions and portions of the
member accounts so as to provide retirement benefits for members of the system
that will fluctuate as the value and earnings of the investments vary in
relation to changes in the general economy. It is anticipated that investment
of those contributions and portions of the member accounts in equities will
result in the accumulation of larger deposit reserves for those members during
their working years, tend to preserve the purchasing power of those reserves
and the retirement benefits provided thereby and afford better protection in
periods of economic inflation.
(2) There is
established in the Public Employees Retirement Fund an account, separate and
distinct from the General Fund, to be known as the Variable Annuity Account.
Interest earned by the account shall be credited to the account. The account is
part of the Public Employees Retirement System and is not a separate defined
contribution plan or account for the purposes of the Internal Revenue Code.
(3)(a) A member
who is making contributions to the fund may elect at any time to have 25, 50 or
75 percent of contributions by the member to the fund on and after the
effective date of the election paid into the Variable Annuity Account, credited
to a variable account, and reserved for the purchase of a variable annuity. A
member who has elected to have a percentage of contributions so paid, credited
and reserved may elect at any time thereafter to have an additional 25 or 50
percent of contributions by the member, but not to exceed a maximum of 75
percent, so paid, credited and reserved. An election shall be in writing on a
form furnished by the board and be filed with the board. An election shall be
effective on January 1 following the filing thereof.
(b)
Notwithstanding any other provision of this section, a member may not
contribute to the Variable Annuity Account after December 31, 2003.
(4) A member who
has elected to have contributions paid into the Variable Annuity Account under
subsection (3) of this section may thereafter cause the contributions to cease
being paid into the members variable account by filing a request in writing on
a form furnished by the board and filed with the board. The contributions shall
cease being paid into the members variable account after December 31 following
the filing of the request. Contributions paid into the members variable
account before the effective date of the request for cessation shall remain in
the members variable account.
(5)(a) An
employee who is a member of the system on January 1, 1968, and who thereafter
made contributions to the Variable Annuity Account, may elect at any time to
have an amount equal to 10 percent per year, for not more than five years, of
the balance of the regular account of the member in the fund on the effective
date of an election filed under subsection (3) of this section, transferred
from the regular account of the member to the Variable Annuity Account,
credited to the members variable account, and reserved for the purchase of a
variable annuity. An election shall be in writing on a form furnished by the
board and be filed with the board. An election is final and irrevocable upon
the filing thereof. The first transfer pursuant to an election shall be made on
July 1 following the filing of the election, but may be made, in the discretion
of the board, on an earlier date.
(b) If the
transfers elected by a member under this subsection have not been completed at
the time of retirement, a transfer equal to one annual transfer shall be made
pursuant to an election by the member made and filed as provided in this
subsection.
(c) No transfer
shall be made under this subsection after the first payment of the service
retirement allowance of the member becomes normally due.
(d)
Notwithstanding paragraphs (a) to (c) of this subsection, a member may not
elect to transfer funds under this subsection after December 31, 2003.
(6) Moneys in the
Variable Annuity Account may be invested in investments authorized by law for
investment of moneys in the Public Employees Retirement Fund; but,
notwithstanding any other general or specific law, moneys in the account shall
be invested primarily in equities, including common stock, securities
convertible into common stock, real property and other recognized forms of
equities, whether or not subject to indebtedness. Not more than five percent of
the amortized value of all the investments of the Variable Annuity Account and
of moneys in the account immediately available for investment may be invested
in the obligations of or equities in a single, primary obligor or issuer. A pro
rata share of the administrative expenses of the system shall be paid from
interest earned by the Variable Annuity Account.
(7)(