The Employee Pension Stability Account (EPSA) is an extra account required for some PERS members. EPSAs are a product
of the Member Redirect program established by Senate Bill 1049 (2019) to help control rising employer rates. The
program gives employers a “member redirect offset” on their invoice.
How it works
The purpose of an employee’s EPSA is to help fund their pension when they retire, thus reducing the
employer’s responsibility in funding the employee’s pension.
The account is funded by redirecting a portion of an employee’s 6%-of-salary IAP contribution into their EPSA.
The redirect occurs in compliance with these rules:
The employee must earn equal to or above the monthly salary threshold in effect for that calendar year. The
threshold is provided on the Member Redirect webpage.
The percent redirected depends on the employee’s PERS plan:
Tier One and Tier Two: 2.5% of gross salary is deposited into the employee’s EPSA; 3.5% is
deposited into the member’s IAP account.
OPSRP: 0.75% is deposited into the employee’s EPSA; 5.25% is deposited into the member’s IAP
account. OPSRP: 0.75% is deposited into the employee’s EPSA; 5.25% is deposited into the
member’s IAP account.
Member Redirect is only in effect when the PERS system is less than 90% funded. (You can find PERS funded status
in the annual report PERS by the
Numbers in the “System Funding Level and Status” section.
The redirect happens automatically in the PERS system.
Members who earn enough to be making an EPSA contribution can choose to make an additional, after-tax contribution
into their IAP that is equal to the exact amount being redirected into their EPSA: 2.5% for Tier One and Tier Two,
0.75% for OPSRP. This option is called a “voluntary contribution,” and it allows members to continue
contributing a full 6% of salary into their IAP account. Employees can begin making voluntary contributions by
choosing the option in the Online Member Services (OMS) online tool.
PERS charges employers for the voluntary contributions. It is up to you to withdraw that amount from your
employees’ paychecks to reimburse your organization.
Learn more: How to Manage an Employee’s