welcome! the pers update an overview of pers, opsrp and the iap revised 11/24/09
DESCRIPTION
Agenda PERS/OPSRP members Individual Account Program PERS Tier One and Tier Two Oregon Public Service Retirement Plan Member resourcesTRANSCRIPT
![Page 1: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/1.jpg)
Welcome! The PERS Update
An Overview of PERS, OPSRP and the IAP
Revised 11/24/09
![Page 2: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/2.jpg)
Disclaimer Information in this presentation
may change as the result of administrative, legislative, or judicial decisions.
![Page 3: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/3.jpg)
Agenda PERS/OPSRP members Individual Account Program PERS Tier One and Tier Two Oregon Public Service Retirement
Plan Member resources
![Page 4: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/4.jpg)
PERS/OPSRP Members PERS members
Tier One: Hired before January 1, 1996 Tier Two: Hired January 1, 1996 through
August 28, 2003 OPSRP members
Hired on or after August 29, 2003
![Page 5: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/5.jpg)
Your Responsibilities Important that PERS has up-to-date
accurate information to send you member annual statements
Throughout your career, it’s your responsibility to ensure your employer always has your correct personal information Employer sends PERS this information
![Page 6: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/6.jpg)
Individual Account Program HB 2020 (effective date of change
January 1, 2004) Member contributions to Individual
Account Program (IAP) No contributions to PERS member
account after this date
![Page 7: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/7.jpg)
Individual Account Program By statute member must
contribute 6% salary contribution whether employer “picks up” contribution or not
Oregon Investment Council provides investment oversight for IAP and PERS/OPSRP pension funds
![Page 8: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/8.jpg)
IAP and Member Contributions Member contributions before January
1, 2004: to PERS member account Contributions effective January 1,
2004 and after: to IAP IAP member account has
earnings/losses until last dollar paid out to inactive or retired member
![Page 9: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/9.jpg)
PERS/OPSRP Retirement PERS retiree receives IAP benefit,
and chooses between thirteen options for PERS pension benefit
OPSRP retiree receives IAP benefit, and chooses between five options for OPSRP pension benefit
![Page 10: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/10.jpg)
IAP Distributions Inactive member (withdrawal)
Lump sum PERS retiree (retirement)
Lump sum (mailed direct to member) Installments over 5-10-15-20 year periods, or Anticipated Life Span Option
Can receive IAP distributions only after separation from PERS covered employment
![Page 11: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/11.jpg)
PERS Members PERS members
Tier One: Hired before January 1, 1996 Tier Two: Hired January 1, 1996 through
August 28, 2003
![Page 12: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/12.jpg)
30 years PERS Total Creditable Service TimeOR
Age Normal retirement
58 – Tier 1 60 – Tier 2 55, or 50 + 25 years total service – P&F
Early retirement 55 50 – P&F
PERS Retirement Eligibility
![Page 13: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/13.jpg)
The PERS Retirement Benefit Calculation factors
Age Service time Final average salary Account balance
![Page 14: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/14.jpg)
Calculation Methods Full Formula
Service time x final average salary x .0167 Money Match
Age factor x account balance x 2 Formula + Annuity (August 21, 1981)
Service time x final average salary x .01 +
Age factor x account balance
![Page 15: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/15.jpg)
Calculation Method Comparison One of three calculation methods
Full Formula Money Match Formula + Annuity (only for those with service time prior to August 21,
1981) Receive benefit based on highest
calculation
![Page 16: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/16.jpg)
PERS Benefit Estimate Calculator Tier One and Tier Two estimated
benefit Includes
Tax remedies http://oregon.gov/PERS
![Page 17: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/17.jpg)
Tax RemedyHB 3349 or SB 656
The greater of either... HB 3349
Benefit increase Based on service time prior to October 1, 1991
SB 656 Based on total service time if hired prior to July
14, 1995 Maximum 4% increase
![Page 18: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/18.jpg)
![Page 19: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/19.jpg)
![Page 20: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/20.jpg)
OPSRP: Effective August 29,2003 Oregon Public Service Retirement
Plan Established by legislature For new employees hired “on or
after” August 29, 2003
![Page 21: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/21.jpg)
OPSRP Two components of the plan
Pension Program: a defined benefit plan based on salary, retirement credit, and a factor
Individual Account Program: a defined contribution plan
![Page 22: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/22.jpg)
OPSRP Pension Program Funded by your employer Employer must make contributions
necessary to fund the Pension Program
Employer contribution rate determined by PERS
![Page 23: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/23.jpg)
Vesting Vested in pension when:
Active member reaches normal retirement age, or
Member completes five years of 600 hrs/year Five years need not be consecutive
Before becoming vested Five consecutive years of less than 600 hrs/year
Forfeit retirement credit Membership terminated
![Page 24: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/24.jpg)
OPSRP Retirement Eligibility Normal retirement age
General service members Age 65, or Age 58 with 30 years of retirement credit
Police and firefighter members Age 60, or Age 53 with 25 years of retirement credit
![Page 25: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/25.jpg)
OPSRP Retirement Eligibility Early retirement age
General service members Age 55
Police and firefighter members Age 50, if the five prior years were as P&F member Age 55, if less than five years of P&F service time
![Page 26: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/26.jpg)
OPSRP Pension Program At retirement, provides lifetime
pension benefit For general service member with
30 years of retirement credit (25 years for P & F) retiring at normal retirement age Will provide approx. 45 percent of
your final average salary at retirement
![Page 27: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/27.jpg)
OPSRP Pension Program Benefit determined by formula
General service: Final average salary x years of retirement credit x 1.5%
P & F: Final average salary x years of retirement credit x 1.8%
![Page 28: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/28.jpg)
Benefit Calculation Example General service member (not P & F) Final average monthly salary: $3750 30 years retirement credit Single Life Option monthly benefit
$3750 x 30 yrs x 1.5 percent = $1687 Above based on normal retirement age
![Page 29: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/29.jpg)
Benefit Calculation Example Police and Firefighter Final average monthly salary:
$3750 25 years retirement credit Single Life Option monthly benefit
$3750 x 25 yrs x 1.8 percent = $1687 Above based on normal retirement age
![Page 30: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/30.jpg)
Planning for the Future Save more for retirement?
Educational employees Eligible to participate in a 403(b)/TSA program or
457 deferred compensation plan State of Oregon or participating local government
employees Eligible to participate in the Oregon Savings
Growth Plan A 457 deferred compensation plan
Earnings accumulate tax-deferred until withdrawal
![Page 31: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/31.jpg)
Member Education Hired on or after January 1, 1996:
Early Career classes (PERS and OPSRP) Within five years of retirement:
Group counseling classes (PERS only) Within one year of retirement:
One-year Group classes (PERS only) Retirement benefit estimates available through
PERS PERS and financial planning
![Page 32: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/32.jpg)
Member Resources Websites and E-mail link for PERS website
PERS: http://oregon.gov/PERS PERS Insurance: http://pershealth.com IAP account: https://iap.csplans.com
Toll-free telephone number PERS
1-888-320-7377 or 503-598-7377 PERS Insurance
1-800-768-7377 or 503-224-7377 PERS and financial planning
http://oregon.gov/PERS
![Page 33: Welcome! The PERS Update An Overview of PERS, OPSRP and the IAP Revised 11/24/09](https://reader035.vdocument.in/reader035/viewer/2022062413/5a4d1b247f8b9ab059996900/html5/thumbnails/33.jpg)
Thank you for attending this presentation!