Pers education and retirement planning
1 / 32

PERS Education and Retirement Planning - PowerPoint PPT Presentation

  • Updated On :

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

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'PERS Education and Retirement Planning' - Jeffrey

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Pers education and retirement planning l.jpg
PERS Education and Retirement Planning

Welcome !

The Oregon Public Service Retirement Plan


Updated: 4/22/08

Disclaimer l.jpg

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

Today s agenda l.jpg
Today’s Agenda


    • Administration

    • Components

    • Membership

    • Retirement Eligibility

    • Individual Account Program

    • Member resources

Opsrp effective august 29 2003 l.jpg
OPSRP: Effective August 29,2003

  • Established by legislature

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

Opsrp administration l.jpg
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 l.jpg
Benefits: Two components of OPSRP

  • Pension Program: a defined benefit plan based on salary and service time


  • Individual Account Program: a defined contribution plan

Opsrp pension program l.jpg
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 l.jpg
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 l.jpg
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 l.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

Vesting l.jpg

  • 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 l.jpg
Active Member Benefits

  • Disability benefit

  • Death benefit

Disability benefit l.jpg
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 l.jpg
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 l.jpg
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 l.jpg
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 l.jpg
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 l.jpg
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 l.jpg
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 l.jpg
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 l.jpg
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 l.jpg
Retirement: Option Choices

  • Normal retirement benefit

    • Single Life Option

    • Paid in lifetime monthly installments

  • Early retirement benefit

    • Reduced pension

Survivorship options l.jpg
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 l.jpg
Lump-sum payout

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

    • Paid as actuarial equivalent lump-sum

Working after retirement l.jpg
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 l.jpg
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 l.jpg
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 l.jpg
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 l.jpg
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 l.jpg
Planning for the Future

  • Save more for retirement

    • 457 deferred compensation plans

      • The Oregon Savings Growth Plan


      • 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 l.jpg
Member Resources

  • Websites and E-mail link for PERS website

    • PERS:


  • Toll-free telephone number


      • 1-888-320-7377 or 503-598-7377