Oregon Bulletin

January 1, 2013

Oregon Public Employees Retirement System, Chapter 459

Rule Caption: Establish uniform rules applicable when PERS has independent contracting authority.

Adm. Order No.: PERS 13-2012

Filed with Sec. of State: 12-5-2012

Certified to be Effective: 12-5-12

Notice Publication Date: 7-1-2012, 9-1-2012

Rules Adopted: 459-005-0400

Rules Amended: 459-035-0001

Rules Repealed: 459-035-0200, 459-035-0220

Subject: PERS is generally subject to the Department of Administrative Services (DAS) public contracting and procurement provisions in ORS Chapters 279A, 279B, and 279C (Public Contracting Code), with some statutory exceptions such as the PERS Health Insurance Program (PHIP) or the Oregon Savings Growth Plan. This rulemaking establishes uniform rules for when PERS has independent contracting authority under those exceptions. These rules are based on the Department of Justice (DOJ) model public contract rules, as effective on August 1, 2012, as generally applicable to PERS, with exceptions being specifically identified.

 This rulemaking also codifies the public contracting rules in one place rather than having similar provisions in each subject area, which makes the rules easier to use and to update, as well as provides consistency of rules for all subjects. Repealing existing rules and adopting these new rules will not substantively change any of PERS’ contracting practices.

Rules Coordinator: Daniel Rivas—(503) 603-7713


General Applicability of Attorney General’s Model Public Contract Rules

(1) When PERS has independent statutory authority to contract, and the Public Contracting Code does not apply, PERS adopts the following Attorney General’s Model Public Contract Rules to govern its contracting activity:

(a) OAR chapter 137, division 46 — General Provisions Related to Public Contracting: 137-046-0100, 137-046-0110, 137-046-0200, 137-046-0252, and 137-046-0400 through 137-046-0480; and

(b) OAR chapter 137, division 47 — Public Procurements for Goods or Services: 137-047-0100, 137-047-0260 through 137-047-0670, 137-047-0700 through 137-047-0760 (excluding provisions governing judicial review), and 137-047-0800. Judicial review of decisions relating to any protest is governed by the Oregon Administrative Procedures Act, ORS Chapter 183.

(2) For PERS’ purposes, references in the Model Public Contract Rules to the Director of the Oregon Department of Administrative Services shall be applied as references to the PERS Executive Director.

(3) Model Public Contract rules other than those identified in section (1) of this rule do not apply to PERS.

Stat. Auth.: ORS 238.650, 238A.450 & 279A.065
Stats. Implemented: ORS 279A & 279B
Hist.: PERS 13-2012, f. & cert. ef. 12-5-12



The words and phrases used in this division have the same meaning given them in ORS Chapters 238 and 238A. Additional terms are defined as follows unless the context requires otherwise.

(1) “Dependent” means a PERS member’s or retiree’s dependent child. For the purpose of this rule a “child” is defined as follows:

(a) A natural child.

(b) A legally adopted child, or a child placed in the home pending adoption.

(c) A step-child who resides in the household of the stepparent who is an eligible retired member.

(d) A grandchild, provided that at the time of birth, at least one of the grandchild’s parents was covered under a PERS-sponsored health insurance plan as a dependent child of the PERS member or retiree and resides in the household of the member or retiree.

(2) “Dependent Domestic Partner” means a person who has a relationship with a PERS retiree that has the characteristics described below. To qualify as a “dependent domestic partner”, the person and the PERS retiree must:

(a) Share a close personal relationship and be responsible for each other’s common welfare, including but not limited to having joint financial responsibilities;

(b) Be each other’s sole domestic partner;

(c) Not be married to anyone, nor have had another domestic partner within the previous 12 months;

(d) Not be related by blood so closely as to bar marriage in the State of Oregon;

(e) Have jointly shared the same regular and permanent residence for at least 12 months immediately preceding the effective date of coverage with the intent to continue doing so indefinitely; and

(f) Have the PERS retiree providing over one-half of the financial support for the person and qualify as a dependent of the PERS retiree as determined under section 105(b) of the Internal Revenue Code, 26 USC 105(b).

(3) “Eligible Person” means a person who is eligible for coverage under a PERS-sponsored health insurance plan. The conditions for such eligibility are set forth in OAR 459-035-0020.

(4) “Eligible Retired Member” means an eligible person who is eligible for payments toward the cost of the Medicare Companion Plan from RHIA. The conditions for such eligibility are set forth in OAR 459-035-0030.

(5) “Eligible Retired State Employee” means an eligible person who is eligible for non-Medicare insurance premium payments from the RHIPA. Conditions for such eligibility are set forth in OAR 459-035-0040.

(6) “Medicare” means the federal health care insurance plan established under Title XVIII of the Social Security Act as amended.

(7) “Medicare Companion Plan” means a PERS-sponsored health insurance plan for eligible persons who are eligible for and enrolled in Medicare.

(8) “PEBB” means the Public Employees’ Benefit Board established under ORS 243.061.

(9) “PERS Member” has the same meaning as “member” provided in ORS 238.005 and 238A.005.

(10) “Plan Year” means a 12-month period beginning January 1 and ending December 31.

(11) “Qualifying Service” means:

(a) Creditable service, as defined in ORS 238.005, plus any periods of employment with an employer participating in PERS that are required of the employee before becoming a PERS member; or

(b) Periods of employment in a qualifying position, as that term is defined in OAR 459-010-0003.

(12) “Retiree” means a PERS member who is receiving a service or disability retirement allowance or benefit under PERS or who received a lump sum payment under ORS 238.305(3), 238.315, or 238A.195, or payment(s) under 238A.400, or a person who is receiving retirement pay or pension calculated under 1.314 to 1.380 (1989 Edition).

(13) “RHIA” means the Retirement Health Insurance Account established under ORS 238.420 to help defray the cost of the Medicare Companion Plan.

(14) “RHIPA” means the Retiree Health Insurance Premium Account established under ORS 238.415 to help defray the cost of PERS-sponsored health plans other than the Medicare Companion Plan.

(15) “SRHIA” means the Standard Retiree Health Insurance Account established under ORS 238.410 to administer employee and the employer contributions to the PERS sponsored health insurance program.

(16) “Staff” means the employees of the Public Employees Retirement System.

(17) “Third Party Administrator” means the individual or organization that the Board contracts with to provide administrative services as specified in the contract.

Stat. Auth.: ORS 238.410, 238.650 & 238A.450
Stats. Implemented: ORS 238.410, 238.415, 238.420 & 238A.050
Hist.: PERS 4-1996, f. & cert. ef. 6-11-96; PERS 15-1998, f. & cert. ef. 12-17-98; PERS 5-1999, f. & cert. ef. 11-15-99; PERS 14-2002, f. & cert. ef. 11-18-02; PERS 17-2005, f. & cert. ef. 10-3-05; PERS 1-2010(Temp), f. & cert. ef. 4-5-10 thru 9-27-10; PERS 9-2010, f. & cert. ef. 9-29-10; PERS 13-2012, f. & cert. ef. 12-5-12

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