MEMBERS

The primary components and differences among the PERS Tier One and Tier Two programs, the Oregon Public Service Retirement Plan (OPSRP) Pension Program, and the Individual Account Program (IAP) are shown below. Tier One covers members hired before January 1, 1996; Tier Two covers members hired between January 1, 1996, and August 28, 2003; and OPSRP covers members hired after August 28, 2003. The IAP is an account-based benefit that includes all member contributions (6% of covered salary) plus annual earnings or losses, made on and after January 1, 2004.

Benefit Tier One Tier Two OPSRP Pension IAP
Normal retirement age 58 (or 30 years)

P&F = age 55 or 50 w/25 years
60 (or 30 years)

P&F = age 55 or 50 w/25 years

65 (58 w/30 years)

P&F = age 60 or 53 w/25 years. 
To retire as a police officer or firefighter, you must have worked continuously as a P&F member for at least 60 months immediately preceding your retirement, and your effective retirement date must be the first of the month following your separation from P&F employment.

Members retire from IAP when they retire from Tier One, Tier Two, and OPSRP
Early retirement 55 (50 for P&F) 55 (50 for P&F) 55, if vested (50 w/ 5 years of continuous service in a P&F position immediately preceding effective retirement date) Members retire from IAP when they retire from Tier One, Tier Two, and OPSRP
 
Regular account earnings Guaranteed assumed rate annually (currently 7.2%) No guarantee; market returns N/A; no member account No guarantee; market returns
Variable account earnings Market returns on 100% global equity portfolio Market returns on 100% global equity portfolio N/A; no member account N/A
Retirement calculation methods Money Match, Full Formula, or Formula + Annuity (if eligible) Money Match or Full Formula Formula Various account pay-outs or rollover
Full Formula benefit factor 1.67% general; 2.00% P&F 1.67% general; 2.00% P&F 1.50% general; 1.80% P&F N/A
Formula + Annuity benefit factor 1.00% general; 1.35% P&F N/A N/A N/A
Oregon state income tax remedy

If eligible, higher of 9.89% on service time before Oct. 1, 1991 or 4% or less based on total service time. Not payable to benefit recipients that do not pay Oregon state income tax because they do not reside in Oregon

No tax remedy provided No tax remedy provided No tax remedy provided
Lump-sum vacation payout included in covered salary (6%) Yes Yes No Yes for Tier One and Tier Two; no for OPSRP
Vacation payout included in FAS Yes No No N/A
Unused sick leave included in FAS Yes, if employer participates in the sick leave program Yes, if employer participates in the sick leave program No N/A
6% “pickup” included in FAS Yes Yes No N/A
Vesting Active member in each of 5 calendar years Active member in each of 5 calendar years 5 calendar years w/ at least 600 hours qualifying service or normal retirement age Immediate
COLA (after retirement) Up to 2% annually for service on or before October 1, 2013 and a blended COLA for subsequent service No COLA provided

P&F = police and firefighters; FAS = final average salary; COLA = cost-of-living adjustment; N/A = not applicable

PERS uses three methods to calculate Tier One and Tier Two retirement benefits: Full Formula, Formula + Annuity (for members who made contributions before August 21, 1981), and Money Match. PERS uses the method (for which a member is eligible) that produces the highest benefit amount. OPSRP Pension benefits are based only on a formula method.

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