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 Retirement Eligibility Individual Account Program Member resources

OPSRP: Effective August 29,2003 Established by legislature For new employees hired “on or after” August 29, 2003

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 Pension Program: a defined benefit plan based on salary and service time AND Individual Account Program: a defined contribution plan

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 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 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 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 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 Disability benefit Death 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 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 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 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 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 General service member (not P & F) Final average monthly salary: $ 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 Example Police and Firefighter Final average monthly salary: $ 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 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 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 Normal retirement benefit Single Life Option Paid in lifetime monthly installments Early retirement benefit Reduced pension

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 If monthly pension for member or beneficiary totals $200 or less Paid as actuarial equivalent lump-sum

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 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  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 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 Inactive member (withdrawal) Lump sum OPSRP retiree (retirement) Lump sum, or Installments over year periods, or Anticipated Life Span Option Can receive IAP distributions only after separation from OPSRP covered employment

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 Websites and link for PERS website PERS: Toll-free telephone number PERS/OPSRP or

Questions?Questions?