If you are one of some 11,000 PERS retirees who remained in the Variable Annuity Program at retirement, you will see a decrease in the amount of your retirement benefit beginning with the February 1, 2012 payment. You will receive a letter from PERS with information regarding the adjustment to the variable portion of your monthly benefit.
The adjustment is based on the variable account’s 12-month period of gains or losses as of the preceding October 31 (e.g., November 1, 2010 to October 31, 2011), minus the assumed interest rate in effect at the time of retirement and administrative costs.
Members in the variable who retired before January 1, 1978, will see a -4.61 percent decrease to the variable portion of their monthly benefit payments.
Members in the variable who retired on or after January 1, 1978, but before June 1, 1992, will see a -5.95 percent decrease to the variable portion of their monthly benefit payments.
Members in the variable who retired on or between June 1, 1992, and before November 1, 2010, will have the variable portion of their monthly benefit decreased by -6.82 percent.
Please keep in mind that variable account investment returns through October 31, 2011 will affect individual retired members differently. This is because of the assumed interest rate in effect at the time of initial retirement and because each person has a different proportion of his/her benefit funded by their Variable Annuity, depending on his/her participation pattern, contribution level, and earnings or losses credited since retirement.