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Senate Bill 1049 member information

Wondering how Senate Bill (SB) 1049 (2019) might affect you? Make sure you are signed up for GovDelivery alerts to receive SB 1049 updates via email or text.

We have organized the following information to help answer your questions, including links to in-depth webpages for each aspect of the bill.

Note that SB 1049 includes several policy and program changes affecting various membership types and PERS-participating employers. These changes may not be applicable to everyone.

SB 1049 is a comprehensive piece of legislation intended by the Oregon Legislature to address the increasing cost of funding Oregon PERS, by providing relief to public employers for escalating PERS contribution rate increases. The Oregon Legislature is the “plan sponsor” for PERS, the system, and has the sole authority to determine the benefit structure for public employees. PERS, the agency, administers the retirement system (the “plan”) for participating public employers, and must follow all state and federal laws.

This webpage includes information for:

  • Active members: Tier One and Tier Two (hired before August 29, 2003) and Oregon Public Service Retirement Plan (OPSRP; hired after August 28, 2003) members currently working for a PERS-participating employer
  • Inactive members: Members who are not working for a PERS-participating employer but who are not yet retired
  • Retired members
  • PERS employers

If you have questions after reading this page and the related topic pages we have linked to, contact Member Services for assistance.

Includes members currently working for a PERS-participating employer from all programs:

  • Tier One and Tier Two – Hired before August 29, 2003
  • OPSRP – Hired after August 28, 2003

How does this bill impact me and my future retirement benefits?

First, remember that all active members have two parts to their PERS retirement:

  • A pension – Tier One, Tier Two, or OPSRP
  • An Individual Account Program (IAP) account

Active members may be impacted by one or more of the following:

  • Salary Limit changes
  • Member (IAP) Redirect
  • IAP Member Choice
  • Work After Retirement rule changes
  • OPSRP Withdrawal rule changes, if you are an OPSRP member and leave PERS-participating employment and want to withdraw your IAP

Salary limit

Beginning January 1, 2020, SB 1049 changed the definition of “salary”* for PERS purposes and created new limitations on annual and monthly “subject salaries.”

With PERS, your subject salary is used to determine member Individual Account Program (IAP) contributions, employer contributions to fund the pension program, and the final average salary used in calculating retirement benefits under formula methods.

Salary limits by year

Year Salary limit**
2024 $232,976
2023 $225,533
2022 $210,582

For full details about the SB 1049 salary limit, read our SB 1049 Changes: Salary Limit webpage.

*Effective January 1, 2022, Senate Bill (SB) 111A (2021) made a number of updates to SB 1049. SB 111A:

  • Changed the definition of “salary” for OPSRP members to include salary that is or would be subject to Oregon state income tax if the member were an Oregon resident. This allows members who are working for a PERS-covered employer but physically out of state (e.g., if they live in Washington and are working from home) to have contributions made on that salary.
  • Made the revised definition of salary retroactive to 2003 for Oregon Health and Science University and charter schools. For all other employers, the revision was made retroactive to January 1, 2020.

**The limit is indexed annually to the Consumer Price Index [(CPI); [All Urban Consumers, West Region] to keep pace with inflation. The limit also is prorated when members work fewer than 12 months in a calendar year.

Member Redirect

As of July 1, 2020, if your gross pay in a month exceeds the monthly salary threshold, a portion of your 6% IAP contribution is redirected to your Employee Pension Stability Account (EPSA). EPSA will be used to pay for part of your future pension benefit. The redirect to EPSA remains in effect when the PERS system is less than 90% funded***.

The portion of the 6% redirected to your EPSA depends on your membership type:

The remainder of your 6% is contributed to your IAP as usual.

More details about Member Redirect and opportunities to make additional, after-tax voluntary contributions, are available online for Tier One/Tier Two and OPSRP members, including new animated videos that help explain the changes.

***The latest actuarial valuation shows that PERS’ funded status is 73% as of December 31, 2022.

IAP Member Choice

Every September, you have the option to invest your IAP balance in an IAP Target-Date Fund (TDF) that better reflects your retirement savings goals.

Your IAP is currently invested in a TDF based on your birth year. With Member Choice, you can stay in the fund assigned to your birth year or voluntarily choose a different TDF for the upcoming year, based on your personal risk tolerance.

Find full information about Member Choice on the IAP Target-Date Funds webpage.

Working after retirement

If you decide to return to work for a PERS-participating employer after you retire, make sure you understand the rules that were simplified under SB 1049. Read more in the retirees section toward the end of this webpage.

OPSRP withdrawal

Withdrawal rules could impact you as an OPSRP member after you leave PERS-participating employment and become an inactive member. For details, read the OPSRP withdrawal webpage or the separate section toward the end of this webpage.

Not retired, not currently working for a PERS-participating employer.

How does this bill impact me and my future retirement benefits?

Member Choice

If you have an IAP account, you can voluntarily choose, once per year, to have your IAP balance invested in a different IAP Target-Date Fund. Find full information on the IAP target-date funds webpage.

OPSRP withdrawal

Changes to withdrawal rules for your IAP may impact you if you are an OPSRP member. For details, read the OPSRP withdrawal webpage or the separate section toward the end of this webpage.

Other SB 1049 provisions

Most aspects of this bill will not impact you as an inactive member.

IAP Redirect and Employee Pension Stability Accounts only apply to members who are currently working for a PERS-participating employer.

PERS retirees who are receiving monthly pension benefits or who took a lump-sum payment of their pension value.

Will the bill change my monthly pension benefit?

No. SB 1049 will not impact benefit payments to retired members.

However, if you have returned to work for a PERS-participating employer or are considering returning to work, SB 1049 may affect you. Read the next section.

For years 2020-24 [extended to 2034 by House Bill (HB) 2296 (2023)], most retirees have no limitations on the number of hours they can work for a PERS-participating employer and still receive their PERS pension benefit (restrictions apply for early retirees and some retirees receiving Social Security benefits). Full information for retirees can be found on the SB 1049 and HB 2296 Changes: Work After Retirement webpage.

However, note that PERS is not involved in hiring decisions between employers and employees, and employers may have other limitations on retiree work hours. Retirees considering work after retirement should consult with their employer’s HR office about any polices related to working after retirement.

View the relevant flowchart below to see which retirees, in general, can work unlimited hours while still receiving their PERS pension benefit:

Starting with withdrawals effective on or after July 1, 2020, OPSRP members who withdraw their IAP balances will lose their PERS membership and forfeit their rights to any pension benefit at retirement.

If you choose to withdraw, you must still meet certain criteria, including stopping all work for all PERS-participating employers for at least one month. This includes substitute, temporary, and on-call positions. You also cannot be eligible for PERS retirement by age or years of service.

For more information, see our SB 1049 Changes: OPSRP Withdrawals Effective July 1, 2020 webpage.

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This webpage is for general informational purposes only and is not intended to provide legal or financial advice. If there is any conflict between this webpage and federal law, Oregon law, or administrative rules, the laws and rules shall prevail.

In compliance with the Americans with Disabilities Act (ADA), PERS will provide documents on this page in an alternate format upon request. To request a document in an alternate format, call 888-320-7377 (toll free) or TTY 503-603-7766.


Subject salary is salary that is subject to PERS pension and IAP contributions and used in calculating PERS retirement benefits.