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Employer Announcement #45
Break-in-Service Removal from EDX

EDX Release 4.2.4 will be installed the weekend of November 8-9, 2008, and will remove "Break-in-Service" (BIS) rules from EDX.

PERS staff will then begin moving active and inactive members into the correct program: Tier One/Tier Two or, in some cases, OPSRP. A large number of individuals are affected, so this program correction will be done incrementally.

Removing BIS rules is retroactive to August 29, 2003, the beginning of OPSRP. Consequently, lump-sum pay (LSP) and lump-sum vacation pay (LSVP) payments made from August 29, 2003, to the date of this plan transfer will become “subject salary” for those OPSRP members moved to Tier One or Tier Two. PERS will pay the contributions and earnings for these LSP and LSVP payments. Offsetting credits for these LSP and LSVP contributions and earnings will appear on employer statements after members are moved to the correct program.

Employer rates will also be affected, and the difference in employer rates between OPSRP and Tier One/Tier Two may produce a credit for many employers. These credits will also appear on employer statements after members are moved between programs.

We will provide additional information in the near future.