The 72nd Oregon Legislature created the Oregon Public Service Retirement Plan (OPSRP). Public employees hired on or after August 29, 2003, become part of OPSRP unless membership was previously established in PERS.
OPSRP is a hybrid (defined contribution/defined benefit) pension plan with two components: the Pension Program (defined benefit) and the Individual Account Program (defined contribution). A defined benefit plan is benefit-based and uses predictable criteria such as a pension determined by salary x length of service x factor. A defined contribution plan has no guaranteed earnings. When a member retires, he or she receives the contributions plus any earnings or losses that have accrued.
Beginning January 1, 2004, member contributions (including Tier One and Tier Two contributions) have been placed in the Individual Account Program (IAP). PERS members retained their existing Tier One and Tier Two accounts.
This portion of OPSRP provides a life pension funded by employer contributions.
Benefits are calculated with the following formula for members who attain normal retirement age:
Police and Fire (P & F): 1.8 percent x final average salary x years of service. Normal retirement age for P & F members is age 60 or age 53 with 25 years of retirement credit. To be classified as a P & F member, the individual must have been employed continuously as a P & F member for at least five years immediately preceding retirement.
General Service: 1.5 percent x final average salary x years of service. Normal retirement age for general service members is age 65 or age 58 with 30 years of retirement credit.
Final average salary (FAS) is the higher of the average of the highest three consecutive years (or less if the member was employed for less than three years) or 1/3 of total salary in the past 36 months. In determining FAS, "excess" overtime is not included. Excess is defined as overtime paid above the average paid to employees of that class during the time period being averaged, as established by PERS rule.
A member earns 1 year of retirement credit by working a minimum of 600 hours qualifying service in a calendar year.
Individual Account Program (IAP)
OPSRP members contribute 6 percent of salary to the IAP, and employers may agree to pay the 6 percent contribution.
Accounts are credited with earnings or losses annually. Administrative costs of the plan are charged to these accounts.
At retirement, the member may receive the IAP as a lump-sum payment; in equal installments over 5, 10, 15, or 20 years; or over the member's anticipated life span. If a retired member dies before the installment payments are completed, his or her beneficiary may receive the remaining installment payments or choose a lump-sum payment.
Read the OPSRP New member Brochure.
Full text of OPSRP (House Bill 2020)