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Monthly Benefit Increase for Retirees in Variable Account
If you are one of some 11,000 PERS retirees who remained in the Variable Annuity Program at retirement, you should see an increase in the amount of your retirement benefit beginning with the February 1, 2011 payment. You will receive a check stub in the mail with information regarding your benefit adjustment.
 
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, 2009 to October 31, 2010), minus the assumed interest rate in effect at the time of retirement and administrative costs. The variable account earned 15.78 percent for the 12 months preceding October 31, 2010.
 
Members in the variable who retired before January 1, 1978, will receive a 10.32 percent increase in monthly benefit payments for the variable portion of their accounts.
 
Members in the variable who retired on or after January 1, 1978, but before June 1, 1992, will receive an 8.78 percent increase in monthly benefit payments for the variable portion of their accounts.
 
Members in the variable who retired on or between June 1, 1992, and before November 1, 2009, will have the variable portion of their accounts increased by 7.77 percent.
 
Please keep in mind that variable account gains through October 31, 2010 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.