Due to the impact of COVID-19 on employer budgets, the PERS Board has approved extending the payment date for the first full EIF application cycle to December 1, 2020, or when all matching funds have been paid into employer side accounts.
Due to overwhelming interest, the first round of the Employer Incentive Fund (EIF) is now waitlist only.
All eligible funds for the first EIF application cycle have been allocated to employers. By law, applications were approved in the order they were received.
Funds matched for 2019: $41,555,879.58
Funds allocated for 2020: $58,399,039.42
January 31, 2020, dates and amounts are subject to change
EIF approved employers list.
The Employer Incentive Fund (EIF) provides a 25% match (up to the greater of 5% of an employer’s UAL or $300,000) on qualifying employer lump-sum payments made after June 2, 2018. Employers must apply to receive matching funds (see details below). Participation in the EIF is a key opportunity for employers to proactively manage their employer rates over time and increase their actuarial assets.
PERS accepted applications from all employers beginning at 10 a.m. on Monday, December 2, 2019. View this list to see your minimum and maximum potential EIF match. Due to overwhelming interest, the first round of the Employer Incentive Fund (EIF) is now waitlist only.
Applications were approved on a first come, first served basis. The application period will remain open until August 31, 2020, or until all available funds have been paid.
Employers must make a lump-sum payment of at least $25,000. This payment may establish a new side account or be an additional payment into an existing side account.
The money you intend to use for this lump-sum payment cannot be borrowed.
Employers must participate in the UAL Resolution Program (UALRP). This requirement is satisfied by answering the last two questions in the EIF application.
State and Local Government Rate Pool (SLGRP) employers must pay their transition liability before they are eligible for a side account. Transition liabilities are not eligible for matching funds from the Employer Incentive Fund.
This list of all employers shows the minimum and maximum amount you may receive through the Employer Incentive Fund.
Employers agree to the terms defined in Oregon Administrative Rules 459-009-0084 or 459-009-0085, 459-009-0091, and 459-009-0092.
Side Accounts 101
Side accounts do not "pay off" an employer's UAL, and there is no direct mechanism to "pay off" the UAL. The UAL represents the difference between the assets an employer has, and the liabilities, or responsibilities, it has to its members. To reduce the UAL, an employer needs to either increase its assets or reduce its liabilities. Side accounts, established with lump-sum payments, increase an employer’s assets by pre-paying pension obligations. Side accounts pay a portion (or all) of what an employer pays on their employer statements. Side accounts are an increase in an employer's assets, reducing the gap between assets and liabilities, thereby reducing the employer's UAL.
Once a side account is established, an employer may make up to two additional payments to the account in a year with no minimum payment requirements.
A $1,500 administrative fee on the side account is charged at the end of the first calendar year as part of earnings crediting. The administrative fee is reduced to $500 for subsequent years.
Once an employer makes a side account payment, it becomes a part of the trust fund, and while it will be used solely for the employer’s benefit, it cannot be refunded to the employer.
Side accounts are invested by the Oregon State Treasury in the Oregon Public Employees Retirement Fund (OPERF). Earnings or losses are applied to the account at the end of each year.
Do you want a rate offset when you apply for the EIF?
When applying for the EIF, you have the option to pay for an actuarial calculation ($1,000 initial fee) and select a specific rate offset date. Your application will notify PERS Actuarial Services of your interest. Upon approval, PERS Actuarial Services will reply with next steps and further information.
If you choose a specific rate offset date, your contribution rate will be reduced as of that date (the first of any month). To allow time to work with the PERS actuary, please review the chart below.
|January 1, 2020
||December 2, 2019
||December 27, 2019|
|February 1, 2020
||December 18, 2020
||January 29, 2020|
|March 1, 2020
||January 16, 2020
||February 26, 2020|
|April 1, 2020
||February 17, 2020
||March 27, 2020|
|May 1, 2020
||March 17, 2020
||April 28, 2020|
|June 1, 2020
||April 17, 2020
||May 27, 2020|
|July 1, 2020
||May 18, 2020
||June 26, 2020|
|August 1, 2020
||June 17, 2020
||July 29, 2020|
|September 1, 2020
||July 20, 2020
||August 27, 2020|
|October 1, 2020
||August 17, 2020
||September 28, 2020|
|November 1, 2020
||September 17, 2020
||October 28, 2020|
Please note, the actuarial documents must be mailed to the PERS actuary.
If you do not want to pay for an actuarial calculation, or you do not want a specific date for a rate offset:
|December 26, 2019
||December 31, 2019
||July 1, 2021|
|August 31, 2020
||September 3, 2020
||July 1, 2022|
Upon approval, PERS Actuarial Services will contact you with next steps and further information.