RETIREES

Benefit recipients who remained in the Variable Annuity Program at retirement will see a decrease in their retirement benefit beginning with the February 1, 2017 payment. PERS will mail a letter to each affected benefit recipient with information regarding the 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, 2015, to October 31, 2016), 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 2.60 percent decrease to the variable portion of their monthly benefit payments. The assumed rate at the time was 5.5 percent.

Members in the variable who retired on or after January 1, 1978, but before June 1, 1992, will see a 3.96 percent decrease to the variable portion of their monthly benefit payments. The assumed rate at the time was 7.0 percent.

Members in the variable who retired on or after June 1, 1992, but before January 1, 2014, will have the variable portion of their monthly benefit decreased by 4.85 percent. The assumed rate at the time was 8.0 percent.

Members in the variable who retired on or after January 1, 2014, and on or before January 1, 2016, will have the variable portion of their monthly benefit decreased by 4.63 percent. The assumed rate at the time was 7.75 percent.

Newer retirees will have varying percentages based on the month in which they retired.

Please keep in mind that variable account investment returns through October 31, 2016, 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.

If you review your account in Online Member Services (OMS) the change in your benefit amount will be posted a few days before February 1, 2017.