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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

Welcome !

The Oregon Public Service Retirement Plan

(OPSRP)

Updated: 4/22/08


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Disclaimer

  • Information may change as the result of administrative, legislative or judicial decisions.


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Today’s Agenda

  • OPSRP

    • Administration

    • Components

    • Membership

    • Retirement Eligibility

    • Individual Account Program

    • Member resources


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OPSRP: Effective August 29,2003

  • Established by legislature

  • For new employees hired “on or after” August 29, 2003


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OPSRP Administration

  • Administered by the PERS Board

  • The Oregon Investment Council

    • Invests OPSRP assets as part of the PERS fund


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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


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OPSRP Pension Program

  • Funded by your employer

  • Employer must make contributions necessary to fund the Pension Program

  • Employer contribution rate determined by PERS


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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


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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


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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


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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


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Active Member Benefits

  • Disability benefit

  • Death benefit


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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


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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


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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


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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


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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


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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


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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


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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


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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


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Retirement: Option Choices

  • Normal retirement benefit

    • Single Life Option

    • Paid in lifetime monthly installments

  • Early retirement benefit

    • Reduced pension


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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


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Lump-sum payout

  • If monthly pension for member or beneficiary totals $200 or less

    • Paid as actuarial equivalent lump-sum


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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


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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


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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


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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


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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


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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


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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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