PERS / OPSRP Information
The components of the PERS and OPSRP retirement plans include a defined benefit pension plus an individual account (IAP). Pension benefits are based on your date of hire, years of service and earnings, and are generally available when you reach a normal retirement age. Vesting in the pension account occurs after 5 years of contributions or age 65. You can accumulate assets in the IAP that is invested for you by PERS. Vesting in the individual account occurs immediately upon enrollment.
After the initial eligibility is met, you must continue to work 600 or more hours in a calendar year to maintain eligibility.
Employees on an Educational Visa (F-1, J-1, etc.) are not eligible to participate in the retirement program per Oregon Revised Statute 238.015(4) and Oregon Administrative Rule 459.010.0025(1). Full-time students, specialized employment services clients, and/or student workers may also be excluded from eligibility based on employment and student status.
PERS online provides you with information on your retirement plan, access to forms, the ability to view your account(s), run benefit estimates and more.
Disclaimer: This information is being provided as a general resource and is subject to change. All PERS related benefits and calculations are based solely on the rules and regulations set forth by PERS, Oregon Administrative Rules, and Oregon Revised Statutes.
Plan Categories
Tier 1 – hired prior to 01/01/1996
Tier 2 – hired between 01/01/1996 and 08/28/2003
OPSRP – hired on or after 08/29/2003
Preretirement Beneficiary Designation
Every PERS member needs to submit a preretirement beneficiary form. A preretirement beneficiary designation form tells PERS who will inherit your pension and IAP if you pass away before you retire. By not providing this information, it could delay payment of your benefits to your beneficiary.
Tips:
- A change in marital status invalidates the IAP beneficiary designation. Employees need to submit a new IAP designation form after a divorce, marriage or death of a spouse.
- Provide as much contact information about your beneficiaries as possible. This helps PERS reach them even if their phone number or email changes.
PERS' Designating a Preretirement Beneficiary webpage has links to the required forms and instructions for Tier 1, Tier 2 and OPSRP members.
Purchases
Tier 1 and Tier 2 members who qualify have the option to buy certain types of "service time" (aka retirement credit). The purchase(s) can give you additional service time that can increase your pension amount and even allow you to retire earlier.
Only Tier 1 and Tier 2 members can purchase service time. There are many types of purchases, with the most popular being wait time and forfeited time.
- Wait time is the six months you must work in a qualifying position before becoming a PERS member. Tier 1 and Tier 2 members do not receive service credit for wait time at retirement, but they can purchase it. OPSRP members automatically receive service credit for their wait time.
- Forfeited time occurs when there is a prior membership withdrawal. Within guidelines, a Tier 1 or Tier 2 active or inactive member can restore service time by paying back the withdrawn amount plus 7.5% interest compounded annually from refund to retirement date.
The cost of each type of purchase is calculated differently. To find the estimated cost of your purchase, you need to request a written benefit estimate from PERS by submitting an estimate request form. You must be within two years of retirement to request a written benefit estimate.
A Tier 1/Tier 2 written benefit estimate provides an approximate calculation of your future pension. In addition, it automatically includes the purchase cost of your wait time and forfeited time (if you are eligible to purchase them). When PERS sends the written estimate to the you, they include a purchase letter that lists the cost of the purchase and the amount that the purchase will increase your pension benefit.
Purchases must be made within 90 days before your PERS retirement date. You can pay for the purchase by writing a check to PERS, transferring funds from your deferred compensation (457) or tax-sheltered annuity (403(b)) plan, or a combination of both; however, you cannot use your IAP funds or an IRA to make a purchase. Trustee-to-trustee transfer funds can be used toward service credit purchases, but they cannot be used toward a Police and Fire unit purchase.
Detailed information on Tier 1/Tier 2 purchase options is available on their Purchases webpage.