The following information is provided to retirees who directly receive installment payments from their Individual Account Program (IAP) balance on a monthly, quarterly, or annual basis. If you previously cashed out or rolled over your entire IAP balance, this does not apply to you.
IAP installments investment change: Retirement Installments Fund
Starting January 1, 2020 (first impacting payments and account balances as of March 1, 2020), your remaining IAP account balance receives investment returns based on the Oregon Short Term Fund, which is managed by the Oregon State Treasury.
PERS investments, including your IAP account, are managed by the Oregon State Treasury, under direction from the Oregon Investment Council.
The Oregon Short Term Fund is not invested in the stock market. The fund is managed for three priorities (in this order): preservation of capital, liquidity, and yield. This leads to fewer fluctuations in month-to-month investment returns on your remaining IAP balance. The Oregon Investment Council’s investment strategy is meant to preserve your remaining account balance in a conservative manner.
If you no longer want to receive IAP installment payments, you can choose to receive a one-time, lump-sum distribution of the remainder of your IAP balance at any time. Find required forms and other information on the IAP Installments webpage. Please be aware that processing IAP cash outs can take up to 120 days; however, you will continue to receive investment returns during this time.
About the rates
IAP installment account balances are adjusted each month using an amount called the “monthly change rate” (for details about how this rate is calculated, see the section after the table), regardless of how often you actually receive installment payments.
Before money is taken out of your IAP account for your installment payments, your payment amount is adjusted to reflect the gains or losses on your remaining account balance.
Current IAP installment earnings
|Earnings Available for Crediting as of the end of:
||IAP Account Balance and Payments Updated on
||Monthly Change Rate Credited to IAP Accounts
||March 1, 2020
||April 1, 2020
||May 1, 2020
||June 1, 2020
||July 1, 2020
||August 1, 2020
||September 1, 2020
||October 1, 2020
||November 1, 2020
||December 1, 2020
||January 1, 2021
||February 1, 2021
IAP installment earnings
In 2018 and 2019, members receiving IAP
installment payments were invested in the Retirement Allocation Fund. View previous IAP earnings, keeping in mind that the dates listed
on the previous web pages reflected the “earnings available for crediting”
month-end dates, not the actual dates
your account balance was updated. For example, December 2019 data impacted your
February 1, 2020 account balance or payment.
is the monthly change rate calculated?
PERS credits earnings for IAP account
installment payments following OAR 459-007-0330 and OAR 459-080-0250.
Crediting your IAP account with earnings
on a monthly basis requires PERS to:
- Receive investment performance information for the previous month-end from Oregon State Treasury.
- Near the middle-to-end of the following month, PERS then determines applicable administrative fees and expenses (from PERS and Treasury). The Retirement Installments Fund receives a share of those fees based on the total account balance of the entire fund.
- Using available investment performance information, subtracting the applicable fees and expenses, PERS then calculates the earnings available for crediting to the Retirement Installments Fund.
- The total earnings available for crediting is then divided by the total account balance of the Retirement Installments Fund. The result is the latest year-to-date (YTD) earnings amount. PERS publishes this as the “latest year-to-date.”
- Finally, PERS subtracts the latest month’s YTD earnings amount from the previous YTD earnings amount. This results in the monthly change rate, which is credited to all individual IAP accounts receiving installment payments.
Please note that all these variables can
fluctuate due to both changes in investment performance and with the total
amount of money in the Retirement Installments Fund. As new retirees begin
installment payments and join the Retirement Installments Fund and existing
retirees take distributions from their IAP account balance, the total account
balance of the Retirement Installments Fund fluctuates. While your IAP balance is adjusted every
month with the monthly change rate,
regardless of your payment frequency, reviewing the “latest year-to-date”
information gives you a better understanding of your investment returns as a