Member annual statements: Individual Account Program (IAP) only FAQ

You may have received one of these statements for a few reasons: 

• You retired before 2011.
• You withdrew the value of your pension account.
• You are an Oregon Public Service Retirement Plan (OPSRP) member who withdrew the value of your IAP account.
• PERS is reviewing your account information and membership status.

If you retired before 2011 …

… you were not required to take distributions from your IAP when you retired from your pension. The requirement to retire from both an IAP account and a pension, whether Tier One, Tier Two or Oregon Public Service Retirement Plan (OPSRP), did not begin until January 1, 2011.  

Consequently, if you retired prior to 2011 but left your IAP intact, you will continue to get IAP-only annual statements until you submit a retirement application for your IAP.  

As a pre-2011 retiree, you have the option to retire from the IAP at any time. 

If you previously withdrew your pension account …

… but did not or could not withdraw your IAP account balance at that time, you may still have an IAP account balance.  

If you are eligible to retire (see eligibility criteria for Tier One/Tier Two or OPSRP) and want to receive funds from your IAP (in a lump sum or installments), you can apply to retire from your IAP, provided you are no longer working for any PERS-participating employers.  

If you are not yet eligible to retire and want to cash out your IAP, you can apply to withdraw your IAP balance. You must have stopped working for all PERS-participating employers for at least one calendar month.  

Remember: PERS staff cannot provide financial planning advice, including whether to leave your money in your IAP account or to take distributions if you are no longer working for a PERS-participating employer. To learn about how your IAP is invested, visit Oregon.gov/IAP.  

If you are an OPSRP member who previously withdrew your IAP account …

… you may have a remaining IAP balance, as indicated on the IAP statement you received. You can request distribution of the additional IAP amount by submitting all of the following forms:  

• Individual Account Program (IAP) Rollover-eligible Distribution
• Acknowledgement of Receipt of Federal Tax Information Disclosure at the end of the Federal Tax Information Disclosure document
• W-4R Withdrawal Lump Sum Withholding

PERS is analyzing your account …

… because your employer may have submitted incomplete or inaccurate information. When potential omissions or errors surface, PERS must review your eligibility and membership status. For example, PERS may need to check your employment dates with your PERS-participating employer(s) to see if you are correctly classified as a Tier One/Tier Two or OPSRP member.  

The goal of these reviews is to ensure the accuracy of your account and membership information so that we can help you avoid confusion about what your retirement benefits are and help you avoid any surprises when you apply for retirement.  

You can also review pension information through Online Member Services (OMS).  

For more information, contact Member Services via phone or email.  

Yes – starting September 2020, nonretired members are able to voluntarily make an election, once per year, directing which IAP target-date fund they want their funds invested. This is called a Member Choice Election.  

Any eligible choice made by the annual September 30 deadline, will go into effect January 1, of the following year. Example: if you made a member choice election in 2020, it first becomes effective for calendar year 2021, which means you first see your member choice annual investment returns on your 2021 statement, sent in spring 2022.  

For more details and information on how to change your TDF, visit IAP target-date funds.  

Fill out an IAP Preretirement Designation of Beneficiary form to name someone to receive your benefits should you die before withdrawing your account or retiring. New beneficiary designations supersede all past selections.  

Talk to PERS

Member Services can answer your questions about your IAP-only situation, and more, from 8:30 a.m. to 5 p.m. Monday through Friday. Call 888-320-7377 or email customer-service.pers@pers.oregon.gov. You also can use PERS’ Submit a Question form online.  

Online

See our IAP information webpage for forms and links to various information about IAP accounts.  

If you need help reading and interpreting other details on your member annual statement, see our Tier One, Tier Two or OPSRP interactive example statements for guidance.  

News and announcements

Sign up to receive email or text alerts through GovDelivery. You can choose the topics you wish to receive updates on, including member news and information, Oregon Savings Growth Plan, and PERS Health Insurance.  

The Employee Pension Stability Account (EPSA) is a program created by the Oregon Legislature through Senate Bill (SB) 1049 (2019).  

If your monthly salary exceeds a certain threshold, part of your 6% IAP contribution is added to your EPSA instead of your IAP.  

EPSA’s purpose is to help pay for part of your future pension benefits. EPSA is not an additional benefit. 

If you have already retired or withdrawn from your PERS pension but still have an IAP account, you may be able to retire from the IAP or withdraw your account balance.  

Many variables can impact your ability to withdraw or retire, including whether you are in Tier One, Tier Two, or the Oregon Public Service Retirement Plan (OPSRP).  

For withdrawals, read our Withdrawal information page. If you have questions, contact Member Services for more information.  

Keep in mind that when you apply for an IAP distribution, your account will be credited with earnings or losses based on the returns of your target-date fund. Your IAP will continue to be subject to earnings and losses annually until you remove the funds. IAP accounts have no guaranteed rate of return.  

Did you know that if you are age 73 or older, a delay in taking your retirement benefits as required by the IRS may result in a federal income tax penalty?  

Internal Revenue Code Section 401(a)(9) requires PERS members who are age 73 or older to begin receiving their minimum PERS benefits (i.e., required minimum distribution) before April 1 of the year following the calendar year in which they reach 73 or when they leave PERS employment, whichever is later.  

If you are not working for a PERS-participating employer and are 73 or older, you must submit a retirement application to PERS. We will then calculate your required minimum distribution so you can begin to receive your retirement benefits.  

If you are age 73 or getting close to it, you are advised to seek the guidance of a tax or legal professional. 

Check your personal information on this annual statement to ensure it is correct. 

If you are still working in a PERS-qualifying position and need to correct errors, contact your employer. 

If you are an inactive or retired member, you can correct personal information using Online Member Services (OMS). 

You also can submit an Information Change Request or Date of Birth Change Request form, which are available through the Forms and publications webpage or by contacting Member Services.