House Bill 4159 (2018) would
have provided limited member choice in Individual Account Program (IAP)
investments starting January 1, 2019.
However, following a review mandated by HB 4159, Oregon State
Treasury has determined that, if implemented as originally drafted, this
legislation would violate their legal and fiduciary standards. PERS may not
move forward with implementation of member choice without additional
PERS will work with the Oregon State Treasury, employee groups, and
other partners to develop a proposal to be considered during the 2019
legislative session. In the interim, members will remain invested in age-based IAP
Target-Date Funds until the legal and fiduciary constraints are resolved and
appropriate beneficiary protections are in place.
A special insert about the IAP Target-Date Funds investment strategy change is included with 2018 Member Annual Statements, sent in May 2019.
For members who retire, withdraw, or receive IAP installment
payments this year, PERS will credit monthly earnings for those members’ IAP Target-Date
Fund investments. All other, non-retired members will continue to receive annual
IAP earnings crediting.
Members can learn more about IAP Target-Date Funds and find
investment information, including fund fact sheets, through the Oregon State
Treasury at www.oregon.gov/IAP.
Sign up for GovDelivery emails on this topic to receive additional information in the future.