This webpage is for currently employed Tier One or Tier Two members (you were hired before August 29, 2003).
If you are not currently working for a PERS-participating employer, or you have already retired, this is not relevant to you.
Watch PERS’ new, animated videos that explain the two parts to your retirement
and what is changing with your Individual Account Program (IAP) under Senate Bill (SB) 1049
, starting July 1, 2020.
As a currently employed PERS member, regardless of when you were hired, you have two parts
to your future PERS retirement:
IAP Redirect Begins July 1
Starting July 1, 2020, because of SB 1049, if you earn more than $2,500 a month, a portion of your 6% IAP contributions will be redirected to a new “Employee Pension Stability Account” (EPSA). Your EPSA will be used to pay for part of your future pension benefit. These changes to your IAP contributions will not affect the amount you will receive as your monthly pension benefit when you retire.
Starting July 1, 2.5% of your salary
that is currently contributed to your IAP (whether paid by you or your employer) will start going into your EPSA, which means less money will be going into your IAP.
The remaining 3.5% of your salary will continue to go into your IAP account.
The IAP Redirect is in effect when the PERS system is less than 90% funded*.
You will have an option, starting late September 2020, to elect to make an additional after-tax contribution (to be deducted by your employer) of 2.5% of salary into your IAP, to continue to have a full 6% contribution to your IAP account.
PERS Online Member Services is being updated to give you the ability to elect to make these “voluntary contributions.” However, this functionality will not be available until fall 2020. Once the technology is available, you will have an opportunity to elect retroactive voluntary contributions back to July 1, 2020. It will be a limited, one-time retroactive election, only available until October 31, 2020.
Where can I find information on my IAP or EPSA balance?
Your employer will continue to submit 6% contributions to PERS (whether paid by you or your employer). Because the “redirect” will occur behind the scenes in the PERS system, if your employer currently displays your 6% contributions on your paystub, you likely will not notice any changes. If you view your IAP balance on IAP.Voya.com
, you will eventually notice less money going into your account due to the redirect. Keep in mind that due to routine reporting delays between your employer, PERS, and Voya, the IAP third-party administrator, changes may not be immediately reflected.
What else can I do to save more for retirement?
You don’t have to wait for full implementation of the SB 1049 voluntary contribution opportunity to keep saving for retirement.
As a public employee, additional avenues are available to you today:
- All state agency employees (and local governments and school districts that have adopted the plan) can participate in the Oregon Savings Growth Plan, a 457(b) deferred compensation plan. You can save as little as $25 a month for retirement. OSGP offers both pre-tax and after-tax (Roth) options. Find full details at www.growyourtomorrow.com.
- Your employer may have other 457 or 403(b) options that you can use to further save for retirement.
Under such programs, you may be able to contribute the exact amount of money you are comfortable saving (rather than only 2.5% of your salary), and choose how you want that money invested.
*The latest official actuarial valuation shows that PERS’ funded status including side accounts was 74.9% as of December 31, 2018. The December 31, 2019, actuarial valuation will be adopted in fall 2020.
Information and details about Senate Bill 1049 implementation are subject to change. This information may not apply to all situations.