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PERS Education and Retirement Planning. Welcome ! The Oregon Public Service Retirement Plan (OPSRP) Updated: 4/22/08. Disclaimer. Information may change as the result of administrative, legislative or judicial decisions. Today’s Agenda. OPSRP Administration Components Membership

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pers education and retirement planning
PERS Education and Retirement Planning

Welcome !

The Oregon Public Service Retirement Plan

(OPSRP)

Updated: 4/22/08

disclaimer
Disclaimer
  • Information may change as the result of administrative, legislative or judicial decisions.
today s agenda
Today’s Agenda
  • OPSRP
    • Administration
    • Components
    • Membership
    • Retirement Eligibility
    • Individual Account Program
    • Member resources
opsrp effective august 29 2003
OPSRP: Effective August 29,2003
  • Established by legislature
  • For new employees hired “on or after” August 29, 2003
opsrp administration
OPSRP Administration
  • Administered by the PERS Board
  • The Oregon Investment Council
    • Invests OPSRP assets as part of the PERS fund
benefits two components of opsrp
Benefits: Two components of OPSRP
  • Pension Program: a defined benefit plan based on salary and service time

AND

  • Individual Account Program: a defined contribution plan
opsrp pension program
OPSRP Pension Program
  • Funded by your employer
  • Employer must make contributions necessary to fund the Pension Program
  • Employer contribution rate determined by PERS
opsrp pension program8
OPSRP Pension Program
  • At retirement, provides lifetime pension benefit
  • For general service member with 30 years of service (25 years for P & F) retiring at normal retirement age
    • Will provide approx. 45 percent of your final average salary at retirement
membership requirements
Membership Requirements
  • Hired into a qualifying position
    • Position that normally requires 600 hours of work in a calendar year
  • Completes six full calendar months of work in waiting time period
    • Waiting time period cannot be interrupted by more than 30 consecutive workdays
  • Membership is established
your responsibilities
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
vesting
Vesting
  • Vested in pension when:
    • Member reaches normal retirement age, or
    • Member completes five years of qualifying service
      • Five years need not be consecutive
  • Before becoming vested…
    • Five consecutive years of less than 600 hrs/year causes loss of any prior vesting service
active member benefits
Active Member Benefits
  • Disability benefit
  • Death benefit
disability benefit
Disability Benefit
  • Duty disability
    • Job caused, no service time requirement
  • Non-duty disability
    • Requires a minimum of 10 years of retirement credit
  • Benefit amount
    • 45 percent of salary received on last full month of employment before disability
death benefit
Death Benefit
  • Paid if member vested at time of death
  • Lifetime benefit paid to spouse
  • Benefit shall be actuarial equivalent of 50 percent of pension member would have received
    • Benefit determined by date of member’s death
retirement eligibility
Retirement Eligibility
  • Normal retirement age
    • General service members
      • Age 65, or
      • Age 58 with 30 years of creditable service time
    • Police and firefighter members
      • Age 60, or
      • Age 53 with 25 years of creditable service time
retirement eligibility16
Retirement Eligibility
  • Early retirement age
    • General service members
      • Age 55
    • Police and firefighter members
      • Age 50, if the prior five years were as P&F member
      • Age 55, if less than five years of P&F service time
retirement benefit calculation
Retirement Benefit Calculation
  • Defined benefit plan based on salary, service time and a factor
    • General service: Final average salary x years of service x 1.5 percent
    • P & F: Final average salary x years of service x 1.8 percent
benefit calculation example
Benefit Calculation Example
  • General service member (not P & F)
  • Final average monthly salary: $3750
  • 30 years creditable service time
  • Single Life Option monthly benefit
    • $3750 x 30 yrs x 1.5 percent = $1687
    • Above based on normal retirement age
benefit calculation example19
Benefit Calculation Example
  • Police and Firefighter
  • Final average monthly salary: $3750
  • 25 years creditable service time
  • Single Life Option monthly benefit
    • $3750 x 25 yrs x 1.8 percent = $1687
    • Above based on normal retirement age
final average salary
Final Average Salary
  • Final average salary is the greater of:
    • High three consecutive years, or
    • Salary earned in last 36 months of membership
      • Each of the above divided by 36 to obtain final average monthly salary
years of service
Years of Service
  • No credit for a year with less than 600 hours of service
  • Upon completion of waiting time, eligible employee becomes member, receives credit at that point for waiting time period
retirement option choices
Retirement: Option Choices
  • Normal retirement benefit
    • Single Life Option
    • Paid in lifetime monthly installments
  • Early retirement benefit
    • Reduced pension
survivorship options
Survivorship Options
  • Pension for retired member’s lifetime and same amount for beneficiary’s lifetime
  • Pension for retired member’s lifetime and one-half that amount for beneficiary’s lifetime
lump sum payout
Lump-sum payout
  • If monthly pension for member or beneficiary totals $200 or less
    • Paid as actuarial equivalent lump-sum
working after retirement
Working After Retirement
  • Pension benefits stop upon reemployment in a qualifying position
    • Qualifying position: 600 hours in a calendar year
  • Subsequent retirements
    • Member can choose any retirement option
    • The pension will be recalculated
individual account program
Individual Account Program
  • Member must contribute 6% salary contribution whether employer “picks up” contribution or not
  • Oregon Investment Council provides investment oversight for IAP and OPSRP pension funds
iap and member contributions
IAP and Member Contributions
  • Contributions beginning January 1, 2004 to IAP
  • IAP member account has earnings/losses until last dollar paid out to inactive or retired member
iap and death benefits
IAP and Death Benefits
  • Member’s account paid to beneficiary
  • If married member
    • Must be paid to spouse
      • Unless otherwise designated with form
  • If no named beneficiary
    • Paid to spouse, or
    • Children, or
    • Estate
iap distributions
IAP Distributions
  • Inactive member (withdrawal)
    • Lump sum
  • OPSRP retiree (retirement)
    • Lump sum, or
    • Installments over 5-10-15-20 year periods, or
    • Anticipated Life Span Option
  • Can receive IAP distributions only after separation from OPSRP covered employment
planning for the future
Planning for the Future
  • Save more for retirement
    • 457 deferred compensation plans
      • The Oregon Savings Growth Plan
        • http://oregon.gov/PERS/OSGP
      • Other employer sponsored 457 plans
    • Qualified employer plans
      • 403(b) for education employees
      • 401(k) for some local government employees
    • Earnings accumulate tax-deferred
member resources
Member Resources
  • Websites and E-mail link for PERS website
    • PERS: http://oregon.gov/PERS
    • https://iap.csplans.com
  • Toll-free telephone number
    • PERS/OPSRP
      • 1-888-320-7377 or 503-598-7377
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