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Partial year salary limits

Note: This webpage is intended to provide general information on Senate Bill (SB) 1049 (2019) and may not address your specific situation. If you are considering retirement, you may want to contact PERS for a benefit or speak with a financial adviser or other retirement planning professional.


Starting in 2020, if you are employed less than 12 months in a calendar year, your subject salary will be limited based upon a partial year average salary limit (including any eligible lump-sum payments for Tier One/Tier Two members).

The salary limit applies to all eligible PERS subject salary paid and reported to PERS by your employer — regular pay, vacation payouts (if eligible), overtime pay, etc.

The changes under Senate Bill (SB) 1049 only affect how PERS calculates your pension and contributions to PERS. The limit does not impact the actual salary, wages, or payouts you receive from your employer.

Prior to 2020, only OPSRP members (those hired after August 28, 2003) were impacted by partial year salary limits. Beginning January 1, 2020, partial year salary limits apply to all members (Tier One, Tier Two, and OPSRP).

Looking for information about the annual salary limit under SB 1049? Read our SB 1049 Changes to PERS: Salary Limit webpage.

*The limit is indexed annually to the Consumer Price Index (CPI) [All Urban Consumers, West Region]. The Partial Year Salary Limits chart will be updated each year.

What are the partial year salary limits?

Starting with calendar year 2020, if you have less than 12 months of “active membership” in a calendar year (whether due to retiring or otherwise leaving your PERS-covered position anytime during the calendar year), your subject salary, as reported to PERS, could be limited by the partial year salary limit.

You can calculate your partial year limit by counting the number of months of active membership you have, divided by 12 months, and then multiply that fraction by the annual salary limit in effect for that year. Use the chart below to find your partial year limit.

Partial year salary limits
Months of active membership1
2345678
9101112 (full year)
Months you work ÷ 12 = proration factor0.0833330.1666670.2500000.3333330.4166670.5000000.5833330.6666670.7500000.8333330.9166671.000000
2024 partial year limits$19,414.59$38,829.41$58,244.00$77,658.59$97,073.41$116,488.00$135,902.59$155,317.41$174,732.00$194,146.59$213,561.41$232,976.00*

*The limit is indexed annually to the Consumer Price Index (CPI) [All Urban Consumers, West Region]. The partial year salary limits chart will be updated each year.

In short, your salary limit will be prorated based on the number of months you are employed with a PERS-participating employer in a qualifying position during that year. Any month in which you worked one day or more counts as a month.

For questions about what months count in active membership in a calendar year, see How do you correctly calculate a “partial year”? Keep in mind your months of active membership determine the partial year limit, not the number of payments you receive.

It is important that your PERS-participating employer accurately reports to PERS your subject and nonsubject salary. Your employer is responsible for designating your position as “active” and “qualifying.” Employers should use the Payment CategoriesPartial Year Salary Limits: Information for Employer Reporters.

Partial years and retiring members: Requesting an estimate and calculating final average salary

If your salary averages an amount that meets or exceeds your partial year salary limit, or if you are a Tier One/Tier Two member anticipating a lump-sum payment in your final year of employment (see an example in Final Average Salary in a Partial Year: Tier One/Tier Two, below), there is a possibility, depending on how many months you work in your final year of employment, that a partial year limit might impact the calculation of your final average salary.

If you are within two years of retirement eligibility (Tier One/Tier Two, OPSRP) you may request two written benefit estimates per calendar year without charge. You may wish to request a written benefit estimate to understand how your pension may be calculated (find the request form for Tier One/Tier Two or OPSRP members).

Please note that estimates created through your Online Member Services (OMS) account do not yet reflect the SB 1049 Salary Limit changes.

You can use the partial year salary limit chart below to see how the limits could impact you, depending on how many months you work (“months of active membership”) in a partial year.

Partial year salary limits
Months of active membership123456789101112 (full year)
2024 partial year limits$19,414.59$38,829.41$58,244.00$77,658.59$97,073.41$116,488.00$135,902.59$155,317.41$174,732.00$194,146.59$213,561.41$232,976.00


Final average salary in a partial year: Tier One/Tier Two (hired before August 29, 2003)

Learn more about final average salary (FAS) for Tier One/Tier Two members.

In general, PERS always calculates your “high three calendar years” (Tier One/Tier Two members’ “high three” years do not need to be consecutive) and your total subject salary earned over the “last 36 months.” The higher amount will be used in calculating your FAS.

NOTICE: If your salary averages an amount that meets or exceeds your partial year salary limit and you retire early or mid-year, there is a possibility that the partial year salary limit could impact your last 36 months of total subject salary. This possibility can be increased if you receive a lump-sum payment, such as a large vacation payout.

Final average salary in a partial year: OPSRP (hired after August 28, 2003)

ORS 238A.130 defines final average salary (FAS) rules for OPSRP members slightly differently than Tier One/Tier Two members. In short, the high three years must be consecutive calendar years, and OPSRP members’ lump-sum payments are not included in subject salary.

OPSRP FAS will be whichever is greater of:

  • The average salary per calendar year in three consecutive calendar years
  • The average salary in the last 36 months of employment

Because OPSRP members do not have any vacation or other lump-sum payments added to their FAS calculations, unless you make more than your partial year salary limit (regular and overtime payments), OPSRP members who earn high salaries are unlikely to be impacted by the partial year limits.

Some exceptions could apply - you should get a written estimate or speak with PERS Member Services if you think this situation may apply to you:

  • OPSRP member with a high salary who doesn’t work for a local government and receives three checks in 2023 but works only in January and February (two months of active membership would be $37,588.91 partial year limit despite getting three checks). Remember it is the “months of active membership” in a partial year, not how many paychecks you receive.

How do you correctly calculate a partial year?

Beginning January 1, 2024, the formula to calculate a partial-year limit is:

Months of active membership divided by 12 times $197,730 equals 2021 partial year limit

To clarify: Any month in which you have active membership is counted as a month in the numerator. The denominator is always 12.

  • For example, 7 months of active membership ÷ 12 months = 0.583333.
    • 0.583333 × annual salary limit = prorated salary limit for 7 months.

You do not have to be employed a full month for it to count as active membership (see examples below).

Your PERS-participating employer is responsible for designating your position as “active” and “qualifying.” Note that active membership continues through what your employer sends to PERS as your “termination date,” not your “last day of service.”

Notes for special situations:

  • Any partial month is counted. For instance, if you were employed on January 1 through August 3 of a given year, you would have eight months of active membership in that year.
  • Months of leave without pay (LWOP) during active membership are counted.
  • Any full month (when your employer has not officially “terminated” you in the PERS system) that you had active membership, even if you had no hours or salary reported, is counted.
  • Full months of “nonqualifying” employment do not count.

Example 1: Less than 12 months of active employment

An existing PERS member is hired with a new PERS-participating employer on February 27, 2024, in a qualifying position. He subsequently terminates employment on August 3, 2024. He has seven months of active membership during the 2024 calendar year (both February and August are counted).

7 months of active membership in 20247 months
Divided by 12 months ÷ 12 months
Proration factor for salary limitation0.583333
2024 annual salary limitation × $232,976
Prorated salary limitation for 2024$135,902.59


His 2024 salary limit is $135,902.59. This number would be used for employee and employer contributions and possibly in the calculation of final average salary.

Example 2: A new member

A new public employee started employment on December 10, 2023, in a qualifying position and continues to work through all of 2024 and into the next year. Because she has to complete a six-month waiting period before establishing membership, the first six months of her employment do not count as months of active membership. Her “contribution start date” (i.e., “membership date,” as shown on her member annual statement) is July 1, 2024. Her IAP contributions begin on July 1, 2024, once membership is established. By continuing to work for the entire 2024 calendar year, she has six months (July through December) of active membership in 2024.

6 months of active membership in 2024
6 months
Divided by 12 months
÷ 12 months
Proration factor for salary limitation0.50
2024 annual salary limitation × $232,976
Prorated salary limitation for 2024
$116,488


Her 2024 salary limit is $116,488. This number would be used for determining employee and employer contributions and possibly in the calculation of final average salary.

Note: The salary that she earned during her six-month waiting period would not be counted toward the $116,488 limit because the waiting period does not count as months of active membership.

Example 3: Partial year and December termination

An existing member is employed with a PERS-participating employer in a qualifying position on August 25, 2024, and subsequently terminates employment on December 15, 2024. He receives his final paycheck on January 15, 2025. The member has five months of active membership in 2024 (August through December).

5 months of active membership in 20245 months
Divided by 12 months ÷ 12 months
Proration factor for salary limitation0.416667
2024 annual salary limitation × $232,976
Prorated salary limitation for 2024$97,073.41


The salary paid on January 15, 2025, would be included with his 2024 salary. His 2024 salary limit is $97,073.41. This number would be used for employee and employer contributions and possibly in the calculation of final average salary.