If your gross pay in a month exceeds the monthly salary threshold, a portion of your 6%
Individual Account Program (IAP)
contribution is redirected to your EPSA. This redirect started on July 1, 2020, and is called Member Redirect.
How much of your 6% contribution gets redirected depends on your membership type:
The remainder of your 6% is contributed to your IAP as usual. (For Tier One/Tier Two, the remainder is 3.5%. For
OPSRP, it is 5.25%.)
Member Redirect is based on
pay dates, not pay periods, which can cause the monthly salary threshold to be exceeded in certain
circumstances. Example: A member received a gross monthly paycheck of $2,450 dated April 1, 2021, and another gross
paycheck of $2,450 dated April 30, 2021, because May 1, 2021, fell on a Saturday. As a result, this member’s gross
pay for the month of April 2021 exceeded the monthly salary threshold and was subject to the redirect for April.
Note that you may not see anything on your paycheck stub that reflects the redirect. The redirect occurs behind the
scenes at PERS, and many employers will only list a 6% total for your combined IAP and EPSA contributions.
Also note that Member Redirect is in effect whenever the PERS system is less than 90% funded*.
*The latest actuarial valuation shows that PERS’ funded status including side accounts was 79% as of December
31, 2022.