OREGON STATE TAX REMEDY BENEFITS
Administrative Rule Adopted by FPD&R Board Pursuant to Rule-Making Authority
ARB-FPD-5.14
5.14.01 – DEFINITIONS
“Beneficiary.” The term “Beneficiary” shall mean a person, other than a Member, who receives an FPDR benefit.
5.14.02 – BENEFITS ELIGIBLE FOR ADDITIONAL STATE TAX REMEDY BENEFIT
(A) In accordance with Oregon Revised Statutes, to qualify for an additional state tax remedy benefit a Member or Beneficiary must be receiving an FPDR benefit that:
(1) Is a retirement, death, or nonservice-connected disability benefit; and
(2) Is based on the service of a Member in one of the following categories:
(a) The Member was first sworn with the Bureau of Police or Bureau of Fire and Rescue before July 14, 1995; or
(b) The Member received FPDR service credit for service as a police officer or fire fighter under the Public Employees Retirement System of the State of Oregon before July 14, 1995, in accordance with Section 5.4.11 of these Administrative Rules.
5.14.03 – PERSONS ELIGIBLE FOR ADDITIONAL STATE TAX REMEDY BENEFIT
In addition to receiving an eligible benefit as defined in Section 5.14.02 of these Administrative Rules, and in accordance with Oregon Revised Statutes, a Member or Beneficiary must be an Oregon resident to qualify for an additional state tax remedy benefit.
(A) Establishing Residency in the First Year of Benefit Payments
In the first calendar year a benefit meeting the criteria in Section 5.14.02 of these Administrative Rules is payable, the Member or Beneficiary receiving the benefit shall sign an affidavit attesting that:
(1) They are an Oregon resident and benefit payments will be subject to Oregon income tax, in which case a state tax remedy benefit in the percentage amount defined in Oregon Revised Statutes shall be payable immediately in that calendar year, unless FPDR receives written notification from the Member or Beneficiary before April 16 of that calendar year that they have ceased to be an Oregon resident. In that case, the state tax remedy benefit shall cease to be payable no later than the first day of the second calendar month following receipt of the notice, in accordance with Oregon Revised Statutes; or
(2) They are not an Oregon resident and benefit payments will not be subject to Oregon income tax, in which case no state tax remedy benefit shall be payable in that calendar year, unless FPDR receives written notification from the Member or Beneficiary before April 16 of that calendar year that they are now an Oregon resident. In that case, a state tax remedy benefit in the percentage amount defined in Oregon Revised Statutes shall become payable no later than the first day of the second calendar month following receipt of the notice, in accordance with Oregon Revised Statutes.
(B) Establishing Residency in Subsequent Calendar Years
Beginning in the second calendar year that a benefit meeting the criteria in Section 5.14.02 of these Administrative Rules is payable, the Member or Beneficiary may satisfy the Oregon residency requirement for an additional state tax remedy benefit by either filing tax return form OR-40 as an Oregon resident for the preceding calendar year or by signing an affidavit attesting to their Oregon residency.
(1) As required by Oregon Revised Statutes, FPDR shall annually request Members’ and Beneficiaries’ tax filing status from the Oregon Department of Revenue. FPDR will request the information each December.
(a) If a Member or Beneficiary has filed tax return form OR-40 as a full-year Oregon resident for the preceding calendar year, a state tax remedy benefit in the percentage amount defined in Oregon Revised Statutes shall be payable in the following calendar year, unless FPDR receives written notification from the Member or Beneficiary before April 16 of the following calendar year that they have ceased to be an Oregon resident. In that case, the state tax remedy benefit shall cease to be payable no later than the first day of the second calendar month following receipt of the notice, in accordance with Oregon Revised Statutes.
(b) If a Member or Beneficiary has not filed an Oregon tax return, or has filed tax return form OR-40-N as a nonresident or tax return form OR-40-P as a partial year Oregon resident, the Member of Beneficiary shall remain or become ineligible for the state tax remedy benefit in the following calendar year, unless FPDR receives written notification from the Member or Beneficiary before April 16 of the following calendar year that they are now an Oregon resident. In that case, a state tax remedy benefit in the percentage amount defined in Oregon Revised Statutes shall become payable no later than the first day of the second calendar month following receipt of the notice, in accordance with Oregon Revised Statutes.
(2) A Member or Beneficiary may submit an affidavit before April 16 each calendar year attesting to their Oregon residency and certifying that their benefit payments are subject to Oregon income tax. If a complete and signed affidavit is received by FPDR before April 16, a state tax remedy benefit in the percentage amount defined in Oregon Revised Statutes. Affidavits are valid until the end of the calendar year.
HISTORY
Adopted November 12, 1991.
Effective February 1, 1992.
Revision filed in PPD December 28, 2005.
As Amended by: Resolution No. 519 on November 28, 2017 (Added Section 5.14), Resolution No. 542 on November 16, 2021.
Amended by Director of the Bureau of Fire and Police Disability and Retirement on May 11, 2023