|What requirements must I meet to be able to take payment from my OSGP account? |
You must not work for any state agency or your plan sponsor for a minimum of 30 consecutive days, including services as a temporary employee. In addition, you must have no intention to return to work. For this program, intention to return to work is defined as having at the time of termination a written or oral agreement to return to work with a state agency or current plan sponsor. If you are working a temporary assignment or do not have a break in service, you are not eligible to start receiving payment from this plan. If you plan to return to work on a temporary or part-time basis, please contact our Salem office for further information.
Must I take a payment or start a distribution now?
No. You can keep your money in the Oregon Savings Growth Plan until you're ready to take payment. The latest date you may start your distribution is April following the year in which you reach age 70-1/2.
What can I do with my account balance in the Oregon Savings Growth Plan?
If your account balance at severance of employment exceeds $1,000 and you are less than 70 1/2; years of age, you have these choices:
- Leave your assets in the Oregon Savings Growth Plan and continue the tax-deferred growth of your retirement account.
- Roll assets in from other eligible retirement plans, such as the PERS pension 401(a), 401(k), 403(b), 457, or a pre-tax IRA to consolidate your retirement savings.
- Select among several flexible payment choices, just like those in an IRA.
- Roll your account out to an IRA or other eligible retirement plan.
If you would like assistance with making a decision on distribution options, please call the Transition Counseling Group at 800-365-8494 and ask to speak to an ING transition counselor. For more information, please read the Transition Counseling brochure.
What are my choices if my balance is less than $1,000 when I sever employment?
This is the only circumstance where you must move money out of the plan. You may choose to receive a lump-sum payment within one year of severance, or you may roll the account balance into an IRA or other eligible plan.
What are my choices if I am age 70-1/2; or older?
You must begin payments according to Required Minimum Distribution rules no later than April following the year you turn 70-1/2. If you select this date, you may be required to take a double payment the first year. You may take payments at a higher level and more frequently, but you must begin a distribution that satisfies these minimum requirements.
Why should I leave my money in the Oregon Savings Growth Plan?
There are a number of benefits to keeping your assets with the Oregon Savings Growth Plan.
- Simple - To keep your money in the plan, do nothing.
- Convenient - Keep track of all your retirement savings with one statement.
- Easy access - Start, stop, or adjust your payout whenever you want with a simple phone call.
- Low fees – OSGP offers low administrative and investment fees, which means more money for you!
- Professionally managed - Access to multiple investments carefully selected and monitored by the Oregon Investment Council who also oversee the PERS pension investments.
- Satisfaction - Keeping your money in the plan helps you take advantage of some of the lowest fees in the country without paying commissions or transaction fees.
Can I roll my IRA, 401(k), 403(b), or PERS pension 401(a) accounts into my account with the OSGP?
Yes. Many employees are excited about moving other tax-deferred assets into their state of Oregon account. Keeping all your retirement assets in this one account makes good sense. Your low-cost investments are easier to manage this way, you benefit from the investment oversight of the Oregon Investment Council and, when you wish to take payments, you have the same flexible payout options that are available with an IRA. You can print a Transfer/Rollover In packet from the website or request that one be mailed by calling 800-365-8494.
What are my options for taking money out of the plan?
- Lump-Sum Payment. A check is issued for the total balance in the account, less federal and state taxes.
- Partial Lump-Sum Payment. You may elect to receive a portion of the account in a lump-sum payment, less federal and state taxes. You will need to decide what to do with the remainder of the account. You may use any of the options below, or simply leave the money in the Oregon Savings Growth Plan.
Specified Period (Systematic Withdrawal) Option. This option guarantees a specific number of payments, but does not guarantee a monthly dollar amount since the dollar amount varies depending on the performance of the investments. The payments are based on the balance of the account at the time the payout is processed. You must select a payment start date for this option, and you must schedule at least two years of payments.
Specified Dollar Amount. This option will guarantee you a dollar amount, but does not guarantee a number of payments. You will need to select a payment start date for this option, and you must request payments equivalent to at least $100 monthly.
Minimum Distribution. This option will distribute the lowest amount required by federal law, is based on a life expectancy factor, and should begin during the year you become age 70-1/2; unless you are still working for your plan sponsor. The minimum distribution is available as an annual payment only.
Direct Rollover to an IRA or other eligible retirement plan. By rolling money over to an eligible retirement plan such as a 401(k), 403(b) or an IRA, you maintain the tax-deferred status of your Oregon Savings Growth Plan assets.
However, by rolling money into one of these plans or an IRA, you may inherit some of their limitations. For example, if you withdraw money from an IRA or most other retirement plans prior to age 59-1/2;, you may have to pay both regular state and federal taxes on the income and a 10 percent tax penalty. That tax penalty never applies to assets remaining with the Oregon Savings Growth Plan.
Be certain to compare the fees of the Oregon Savings Growth Plan with the fees of an IRA or retirement plan. With OSGP you have easy-to-understand and very low administrative and investment fees while paying no commission, transfer, or account maintenance fees.
Keep in mind that 457 deferred compensation accounts in the Oregon Savings Growth Plan typically have more legal protection from creditors in personal bankruptcy than an IRA.
If you are interested in this option, please complete the a Transfer/Rollover Out packet and return it to OSGP at 800 Summer Street NE, Suite 200, Salem, OR 97301.
How soon will the first payment take place?
If you choose an immediate distribution, payment will begin no sooner than 30 days after the date you sever employment and 30 days after receipt of your completed Settlement Agreement. If the 30th day falls after the first of the month, it will be paid out the first of the following month. You must complete a Settlement Agreement to receive your first payment. If you are younger than age 70-1/2; and wish to defer payment, you may complete the Settlement Agreement now or wait until you are ready to receive payment. It must arrive in our office at least 30 days before the beginning of the month you wish to be paid.
Do I need to complete a Settlement Agreement each time I want to receive a payment?
No. You need to complete the Settlement Agreement one time only. Our office verifies your eligibility to take payment from your account and activates your account for distribution. If you select an installment payment that is paid to you regularly, your payment will continue as you directed until you make a change. If you request a partial lump sum and later wish to take another payment or begin installment payments, you simply call the Information Line at 800-365-8494 to speak to a customer service representative who will take your request. If you wish to increase, decrease, or stop an installment payment, the customer service representative will help you do so.
How do I let the Oregon Savings Growth Plan know of changes in personal information?
To change your personal information such as name, address, direct deposit, tax withholding, or beneficiary information, you can download those forms at http://www.oregon.gov/PERS/OSGP/osgp_forms.shtml or requesting that they be mailed to you by calling the Information Line at 800-365-8494.
If I start an installment distribution and later return to work for my previous employer, must I stop my distribution?
Yes. If you return to work as a temporary, part-time, or permanent employee for the same employer who sponsored the OSGP, you are eligible to contribute again to your account and are not eligible to continue taking payments from it. You must notify the deferred compensation office of PERS immediately if you return to work so that your opportunity to contribute while employed can be reactivated. When you sever this segment of employment, you again become eligible for payout. You will need to complete a new Settlement Agreement after your employment ends to reestablish your eligibility to take payments.
A Severance Packet, including the forms necessary to activate your account for distribution, can be requested by calling 800-365-8494.