(1)(a) An inactive member of the individual account program may elect to receive a distribution of the amounts in the member’s employee account, rollover account, employer account and employee pension stability account to the extent the member is vested in those accounts under ORS § 238A.320 if the inactive member:

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(A) Has a bona fide separation from all service with participating public employers;

(B) Is not employed with, or has a bona fide separation from, all employers who are treated as part of a participating public employer’s controlled group under the federal laws and rules governing the status of the Public Employees Retirement System and the Public Employees Retirement Fund as a qualified governmental retirement plan and trust; and

(C) Has not attained earliest retirement age.

(b) The board shall deny the distribution, or take all steps necessary to recover distributed amounts, if the board determines that the member’s separation is not a bona fide separation.

(2) If an inactive member of the individual account program who is not vested in the employer account receives a distribution under subsection (1) of this section, the employer account of the member is permanently forfeited as of the date of the distribution.

(3) A member may not make an election under this section for less than all of the member’s individual accounts described in ORS § 238A.350, and the member’s employee pension stability account described in ORS § 238A.353, in which the member is vested.

(4) A member who is also a member of the pension program established under this chapter and who withdraws the member’s accounts under this section cancels all membership rights in the system.

(5) A member who has a member account established under ORS Chapter 238 may make an election under this section only if the member also withdraws that member account in the manner provided by ORS § 238.265. A member who has an account established under ORS § 238.440 may make an election under this section only if the member also withdraws the account established under ORS § 238.440.

(6) If an inactive member receives a distribution under subsection (1) of this section and is subsequently reemployed by a participating public employer, any service performed before the date the member became an inactive member may not be used toward the period of service required for vesting in the employer account under ORS § 238A.320. [2003 c.733 § 40; 2005 c.152 § 3; 2007 c.52 § 3; 2019 c.355 § 8; 2021 c.135 § 5]

(Defined Contribution Benefit)