What is EPSA?
The Employee Pension Stability Account (EPSA) was created by the Oregon Legislature through
Senate Bill 1049 (2019).
EPSA’s function is to help pay for part of your lifetime, monthly pension benefit when you retire.
Does EPSA apply to every PERS member?
EPSA rules apply to most PERS members, but the EPSA redirect (see more in “How does EPSA work?" below) is only triggered when your gross pay in a month exceeds the monthly salary threshold.
This threshold is tied to the
annual Consumer Price Index (All Urban Consumers,
West Region) and can vary year to year.
Each year, the salary threshold will be updated in January. It also can be found in Oregon Administrative Rule
Monthly Salary Thresholds by Year
|Year||Monthly Salary Threshold|
How does EPSA work?
If your gross pay in a month exceeds the monthly salary threshold, a portion of your 6%
Individual Account Program (IAP) contribution is redirected to your EPSA. This redirect started on July 1, 2020, and is called the IAP Redirect.
How much of your 6% contribution gets redirected depends on your membership type:
The remainder of your 6% is contributed to your IAP as usual. (For Tier One/Tier Two, the remainder is 3.5%. For OPSRP, it is 5.25%.)
The IAP Redirect is based on pay dates, not pay periods, which can cause the monthly salary threshold to be exceeded in certain circumstances. Example: A member receives a gross monthly paycheck of $2,450 dated April 1, 2021, and another gross paycheck of $2,450 dated April 30, 2021, because May 1, 2021, falls on a Saturday. As a result, this member’s gross pay for the month of April 2021 exceeds the monthly salary threshold and will be subject to the redirect for April.
Note that you may not see anything on your paycheck stub that reflects the redirect. The redirect occurs behind the scenes at PERS, and many employers will only list a 6% total for your combined IAP and EPSA contributi\ons.
Also note that IAP Redirect will be in effect whenever the PERS system is less than 90% funded*.
*The latest official actuarial valuation shows that PERS’ funded status including side accounts was 78.6% as of December 31, 2019.
What if I still want a full 6% to go to my IAP?
If you earn more than the salary threshold for EPSA and are subject to the IAP Redirect, you have the option to voluntarily make additional after-tax contributions to your IAP.
Voluntary contributions are made on an after-tax basis and must match the amount being redirected to your EPSA:
For more information, read How to Elect and Update IAP Voluntary Contributions Online.
Remember: If you wish to save even more for your retirement, additional options may be available to you, including the Oregon Savings Growth Plan or other 403(b) or 457(b) options.
Why do I need a new account to pay for part of my future pension?
EPSA was created by the Oregon Legislature to address the increasing cost of funding pension benefits. State lawmakers, Oregon State Treasury, and the PERS Board regularly analyze how PERS is doing financially as a retirement system, including annually calculating and reporting the degree to which PERS is funded. (PERS typically shares this information with our members each April in Perspectives, your member newsletter, and in our Comprehensive Annual Financial Reports, which are accessible on our Actuarial/Financial Information webpage.)
Where can I get help if I still have questions?
- Contact Member Services representatives, who can answer specific questions relating to your membership.
- Sign up for PERS' education sessions (Tier One/Tier Two and OPSRP), which can provide you with a general overview of your PERS retirement benefits.
- Sign up for GovDelivery emails and texts to receive updates about your membership and other member news.