| Top 10 Telephone Questions and Answers |
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1. How do I apply for Direct Deposit of my retirement benefit?
Fill out the appropriate Direct Deposit form and mail it to:
PERS
P.O. Box 23700
Tigard, OR 97281-3700
Direct Deposit IAP
Direct Deposit Tier One/Tier Two
Direct Deposit OPSRP
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2. How can I get a W-4P form?
Individual Account Program (IAP)
Tier One / Tier Two Program
OPSRP Pension Program
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3. Where do I get a Power of Attorney form?
Click here for the Power of Attorney form.
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4. Where can I get more information about retiring from the Individual Account Program (IAP)?
- http://oregon.gov/PERS/MEM/section/general_information/iap.shtml
- Your PERS retirement date and your IAP retirement date can be the same. However, you do not have to retire from the IAP when you retire from PERS. You can retire from the IAP any time after your PERS retirement date until you reach the IRS mandatory distribution age of 70 ½ years.
- You must be separated from service and be age 55.
- The entire four-page IAP Retirement Application needs to be completed and mailed to PERS.
- No changes can be made to your payout choices once this application has been submitted for processing to our third party administrator.
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5. Where can I find information (forms) for Police and Fire (P &F) Unit Benefits?
Click here for Police and Fire Forms and frequently-asked P&F questions.
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6. What do I need to do to retire?
Retirement Checklist for Tier One/Tier Two members (what steps should I take to retire?)
- Complete a Benefit Estimate request form and send it to PERS.
- Register for and attend a one-year Group Counseling session.
- Decide on a retirement date (a PERS retirement date is always the first of the month, i.e., January 1, February 1, March 1, etc.).
- Read the PERS Pre-Retirement Guide. This will give you information about retirement decisions you need to make. You will want to research health insurance options, tax implications, and other criteria that affect your individual situation.
- Complete the PERS Service Retirement Application or the IAP Service Retirement Application, or both. There may be other forms you will need to complete to retire from a PERS-covered employer depending on your personal situation.
- Notify your employer. This is a key step. Your employer must send a Notice of Separation to PERS so we can process your retirement.
- Enjoy your retirement!
NOTE: Retirement forms are also available through PERS Customer Service (503-598-7377 or toll free 888-320-7377).
The decisions you make as you prepare to retire are complex. Questions you should ask about your Tier One/Tier Two benefits include:
• When am I eligible to retire?
• Will a few months or days make any difference to my benefit?
• What are my benefit options?
• How much money can I expect to receive each month?
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7. What are my retirement benefit options?
There are 13 retirement options available for Tier One/Tier Two (Chapter 238) members.
Retirement Payment Options
When you retire, you will be able to receive your benefits under one of the 13 payment options summarized below. The option you choose will affect the amount of the monthly benefit payment. An option that includes a beneficiary will produce a lower monthly benefit payment. You may select only one option.
Option 1 (non-refund)
The highest monthly benefit you can receive is paid to you for your lifetime only. No benefit of any kind is paid to anyone after you die.
Refund Annuity Option (beneficiary need not be a person)
This benefit is paid for your lifetime only. When you die, your designated beneficiary will receive a lump-sum refund of any amount remaining in your member account. You may change your beneficiary at any time and you may have multiple beneficiaries. Usually, after nine to eleven years, no remaining account balance is available to pay to your beneficiary.
15-year Certain Option (beneficiary need not be a person)
If you die before receiving 180 monthly payments (15 years), your beneficiary is entitled to receive the remainder of the 180 payments. Your payments will be paid for your lifetime, but if you have received at least 180 payments when you die, no benefit is payable to your beneficiary. You may change your beneficiary anytime and you may have multiple beneficiaries.
Joint and Survivor Options
Under any of the four joint and survivor options, you may name only one beneficiary and the beneficiary must be a living person.
Option 2*
This benefit is paid for your lifetime. After you die, your surviving beneficiary will receive, for life, the monthly benefit you were receiving at your death. You may change your beneficiary only during the 60 days following the date of your first benefit payment. If you outlive your beneficiary, your benefit is not changed, and all benefits stop when you die. If you name a non-spouse beneficiary that is more than 10 years younger than you, the benefits you and your beneficiary will receive may be adjusted to comply with the IRS’ required minimum distributions rules.
Option 2A*
This benefit is paid for your lifetime. After you die, your surviving beneficiary will receive, for life, the monthly benefit you were receiving at the time of your death. However, if your beneficiary should die before you, or your beneficiary is your spouse and you are divorced after you retire, you may then elect to receive the higher-paying Option 1 benefit for the remainder of your lifetime. Proof of death or divorce will be required. For beneficiary deaths or divorce occurring on or after January 1, 2006, a change to the Option 1 benefit amount is effective on the first of the month following the death of beneficiary or divorce of spouse, regardless of when PERS is notified. PERS will pay retroactive benefits in a lump sum. You must send a letter to PERS requesting that your benefit option be changed. You may change your beneficiary only during the 60 days following the date of your first benefit payment. If you name a non-spouse beneficiary that is more than 10 years younger than you, the benefits you and your beneficiary will receive may be adjusted to comply with the IRS’ required minimum distributions rules.
Option 3*
This benefit is paid for your lifetime. After you die, your surviving beneficiary will receive, for life, one-half the monthly benefit amount you were receiving at the time of your death. You may change your beneficiary only during the 60 days following the date of your first benefit payment. If you outlive your beneficiary, your benefit is not changed, and all benefits stop when you die.
Option 3A*
This benefit is paid for your lifetime. After you die, your surviving beneficiary will receive, for life, one-half the monthly benefit amount you were receiving at your death. However, if your beneficiary should die before you, or your beneficiary is your spouse and you are divorced after you retire, you may then elect to receive the higher-paying Option 1 benefit for the remainder of your lifetime. Proof of death or divorce will be required. For beneficiary deaths or divorce occurring on or after January 1, 2006, a change to the Option 1 benefit amount is effective on the first of the month following the death of beneficiary or divorce of spouse, regardless of when PERS is notified. PERS will pay retroactive benefits in a lump sum. You must send a letter to PERS requesting that your benefit option be changed. You may change your beneficiary only during the 60 days following the date of your first benefit payment.
Lump-Sum Settlement Options
These options provide a lump-sum refund of your member account balance plus a lifetime monthly pension from your employer’s contributions. Lump-sum payments are subject to a mandatory 20 percent federal tax withholding if paid directly to the retiree. Different tax treatment applies to lump sums rolled over directly to an IRA or other qualified retirement plan. Consult your tax advisor for information on eligible rollovers and the tax consequences.
Members in the Variable Program who select a lump-sum option must have their variable balance transferred to their regular account prior to distribution.
Lump-Sum Option 1 (non-refund)
After receiving a refund of your member account balance, a benefit based on your employer’s contributions is paid to you for life. No benefit of any kind is payable after you die.
Lump-Sum Option 2*
After receiving a refund of your member account balance, a benefit based on your employer’s contribution is paid as in Option 2.
Lump-Sum Option 2A*
After receiving a refund of your member account balance, a benefit based on your employer’s contribution is paid as in Option 2A.
Lump-Sum Option 3*
After receiving a refund of your member account balance, a benefit based on your employer’s contribution is paid as in Option 3.
Lump-Sum Option 3A*
After receiving a refund of your member account balance, a benefit based on your employer’s contribution is paid as in Option 3A.
Total Lump-Sum Option
You receive a refund of your total member account balance and a matching amount provided by your employer. You will receive no further benefit payment from PERS. You may choose to have the lump-sum portion of your payment paid in up to five annual installments. If you elect more than one installment, the first payment will be made at retirement and subsequent installments will be paid on the anniversary of your effective retirement date. Interest will be credited to your remaining account balance as of December 31 each year. All accumulated interest will be included in your final installment. Statements of your installment account will be mailed each year by mid-June. If you die before all installments are paid, the remaining balance in your member account, plus interest to the date of disbursement, is payable to your beneficiary or next of kin as provided in ORS 238.390(5). For each installment, you may choose to receive the payment or roll the taxable portion over to a traditional IRA or other qualified retirement plan.
* If any of the survivor options are selected, you must provide verification of age for your beneficiary. Your beneficiary must be a person (i.e., not your estate or a charity). The benefit reduction is based upon the age difference between you and your beneficiary. For example, if your beneficiary is a grandchild, your benefit will be substantially lower than if your beneficiary is someone closer to your age because benefits will probably be payable for a longer period.
We also suggest you review the pre-retirement guide for more information.
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8. Death of member: what do I do?
In the event of your death prior to retirement, a member or representative of your family must call PERS Customer Service at 503-598-7377 or toll free 888-320-7377 and report it as soon as possible. PERS will request a photocopy of the death certificate.
more info...
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9. When will my first benefit check start?
Your retirement benefits will be paid on an accrual basis. This means if you retire effective January 1, your first benefit will be due to you February 1. PERS makes every effort to start your benefit on the due date, but if PERS encounters delays in gathering information necessary to calculate your benefit, payment may not be made for 60 to 90 days after your effective retirement date.
Whenever you receive your first payment, it will be retroactive to your benefit due date.
PERS is required to pay retirement benefits within 62 days of the date your benefits become due or to provide an estimated payment. Some exceptions do exist: we need proof of your birth date and possibly your beneficiary’s birth date, and we need to be officially notified that you have stopped working in a PERS Tier One/Tier Two qualifying position before we can pay benefits. Most retirees receive benefits in a timely manner but delays sometimes occur. If possible, plan your finances so you will have income in the event of a delay.
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10. How do I change my address?
Active members must contact their employer(s) with address, name, or Social Security number changes to correct information in the PERS reporting system.
If you are an inactive member, use the Information Change Request form to change your address, name, or Social Security number.
Retired members must use the Retiree Name/AddressChange Request Form to change an address, name, or Social Security number.
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