Welcome to PERS

PERS is the agency responsible for paying retirement benefits to Oregon’s public employees, including state workers, local government employees, school district personnel, and many others.      

While we share a name with the overall retirement system for the state, we do not manage the investment of pension funds or create or modify the laws that dictate how the system operates.      

Watch the video below for an introduction to how we work with the Oregon Legislature and Oregon State Treasury.      

What are my retirement benefits?

PERS offers a combination of the following:     

• A traditional pension, also known as a defined benefit plan.
  AND
• An individual savings through the Individual Account Program (IAP), which is a defined contribution plan.

You can think of your pension as an earned allowance, guaranteeing you a specific monthly benefit throughout your life in retirement, based on your salary and years of service.     

Your IAP is like a piggy bank in that it contains a finite amount of money that is paid to you over a specific amount of time. For example, you can choose to take it all at once in a lump sum or spread out in smaller installments over time.     

Your IAP is similar to a 401(k) in that you or your employer contribute a percentage of your salary to your account. The final benefit that you receive in retirement depends on a combination of those contributions and investment returns.     

Together, your pension and IAP will ensure you have a steady income throughout your retirement.
     

Usually, you become a PERS member six months after you start working in a PERS-qualifying job. Once you’re a member, your retirement benefits will start to accrue.      

As a new PERS member, you’ll be part of the Oregon Public Service Retirement Plan (OPSRP). OPSRP applies to public employees hired after August 29, 2003.      

You may find two other plans mentioned on our website, but these are not applicable to you. They are:     

• Tier One — Only members hired before 1996.
• Tier Two — Only members hired between 1996 and 2003.

Each category has slightly different rules for how retirement benefits are calculated. Only the OPSRP benefit and calculation information will apply to you.      

As an OPSRP member, you’ll be eligible for a range of benefits designed to support your retirement and provide financial security to your loved ones when you die.      

Retirement income options     

You’ll have two main income sources:     

• A pension, which pays a guaranteed monthly amount when you retire, based on your salary and years of service.
  AND
• An Individual Account Program (IAP) account, where a portion of your salary is invested and your benefit depends on how these investments perform over time.

You also can claim federal Social Security retirement benefits.     

Survivor benefits     

In the event of your death, your spouse or designated beneficiary may be eligible to receive a portion of your benefits or a lump-sum payment.      

What you may be eligible for depends on the income source (pension or IAP) and other factors, such as whether you die before or after retirement.      

Read our Member death for Oregon Public Service Retirement Plan (OPSRP) webpage for more information.      

Disability benefits     

PERS offers disability benefits to support members who become too sick or injured to work.     

Eligibility for these benefits depends on your years of service and the nature of the disability.     

Read our Disability benefits overview for Oregon Public Service Retirement Plan (OPSRP) members webpage for more information.      

Funding of your PERS benefits comes from two sources:     

• Your employer makes contributions to the system based on a rate set by the PERS Board to pay for your pension.
• You or your employer contributes a percentage of your salary into your IAP account.

The percentage contributed to your IAP depends on whether you meet a certain salary threshold. If you’re below it, the percentage is 6%. If you meet or exceed the threshold, 5.25% of your salary goes into your IAP, while another 0.75% is directed to the Employee Pension Stability Account (EPSA). You can read more about IAP contributions and EPSA on the following webpages:      

• What is the IAP?
• Employee Pension Stability Account (EPSA) overview
• Senate Bill 1049: Changes to member contributions as of July 1, 2020(the “IAP Redirect” section).
• Find EPSA salary threshold information on the EPSA overview page under “Does EPSA apply to every PERS member?”

Your employer’s contributions to the PERS system — and the investment gains made on them — help to make the pension fund (called the Oregon Public Employees Retirement Fund, or OPERF) financially sustainable and able to pay benefits to all members, both current and future retirees.      

EPSA’s function is to help pay for part of your lifetime, monthly pension benefit when you retire.     

It’s never too early to start planning for a secure retirement, and PERS offers various resources to help you do so.                            

Resources include:                            

• Online Member Services — A member portal where you can review basic member information, such as your mailing address and years of service; and create benefit estimates to help you make informed decisions about your retirement timeline.
• Early career checklist — A list of 10 action items to help you take control of your retirement preparations.
• PERS Expo — An annual retirement education resource that you can attend virtually. PERS experts are available to answer questions, and you can listen to presentations on various topics, including the PERS Health Insurance Plan (PHIP) and the Oregon Savings Growth Plan (OSGP).

Taking the time to understand your financial goals and the retirement options available to you is essential. Regularly reviewing your PERS account and considering how your current contributions will affect your future will put you on the path to a secure retirement.                             

Here are some questions that new members commonly ask:                           

What is a pension?                            

A pension is a retirement benefit that your employer promises to pay you from the day you retire until your death.                            

At PERS, your OPSRP pension is a defined benefit plan provided by your PERS-participating employer. Like an earned allowance, your PERS pension will pay you a monthly amount after you retire, based on factors that include your years of service and salary history. These benefits do not run out and can pass to certain beneficiaries as defined by Oregon law. OPSRP beneficiary information and limitations are discussed on our All about beneficiaries webpage.                             

What is vesting, and when do I become vested?                            

Vesting in your pension means that unless you take action to remove yourself from the system, you have earned pension benefits from PERS.                             

You become vested after working in a PERS-qualifying position for five years for at least 600 hours per year or after reaching age 65.                             

How is a pension different from other retirement accounts such as a 401(k)?                            

A pension provides a guaranteed monthly payment for life in retirement and is funded primarily by your employer.                           

A 401(k) is a savings plan funded by your contributions, often with employer matching, and its value depends on investment performance. It also is a finite amount of money; once you draw it down to a zero balance, you’ll receive no more income from it.                             

Is my IAP a 401(k)?                            

No. While the IAP and a 401(k) are both defined contribution plans, they differ.                           

Your IAP is a 414(k) account and is funded by contributions made by you or by your employer on your behalf.                           

Will I be automatically enrolled in PERS, or do I need to sign up?                            

If you are hired into a PERS-qualifying position, you will automatically be enrolled in PERS after working the required waiting period, which is typically six full calendar months.                             

What if I retire before 30 years of service? What happens to my PERS benefits?                            

If you retire before completing 30 years of service, your benefits will be adjusted based on your years of service and your age at retirement.                             

Early retirement may result in a reduction in your monthly benefit amount.                           

What if someone begins working at a PERS-participating employer at an older age (50+) and won’t work for 30 more years? Are they still entitled to benefits as long as they become vested or reach age 65 while employed?                             

As long as they work for at least 600 hours for five years in a PERS-qualifying position or reach age 65 while employed, they will be entitled to a pension benefit.                             

Their benefit will be calculated based on their actual years of service and salary history. For examples of how PERS does its calculations, go to the “How does PERS determine how much pension I get paid?” section on the OPSRP overview webpage.                             

You can create benefit estimates through our Online Member Services portal to explore what your monthly benefit payment might be like.                             

What is the retirement age?                            

For OPSRP general service members, you can retire with full benefits at age 65 or at age 58 with 30 years of service.                           

Police and Firefighter and Hazardous Position members have different retirement ages.                           

You can find early and normal retirement age information on our Benefit component comparisons webpage.                            

Can I designate a beneficiary?                            

As an OPSRP member, your pension beneficiary options are limited by law. If you die before retirement, PERS will only pay a death benefit to your spouse, your former spouse under a court order (such as a divorce decree), or to any other person required to be treated like a spouse for the purpose of retirement benefits.                             

When you apply for PERS retirement, you can name one beneficiary on your retirement application for your pension.                           

Read more on our All about beneficiaries webpage.                            

As for your IAP, your beneficiary options vary depending on whether you are married or single. Read the IAP Preretirement Designation of Beneficiary Packet instructions for more information.                             

Is my pension taxed?                            

Different states treat pensions differently. Oregon does tax pension incomes.                           

Learn more on our Tax-related information webpage.                            

How do I keep up to date with PERS changes?                            

PERS uses an email system called GovDelivery to send members important information throughout the year.                           

Check out our How to sign up for GovDelivery guide to get started.                            

Do I still get Social Security with my PERS benefits?
                          

Yes. Oregon public service employees can earn Social Security benefits in addition to PERS benefits.                           

As a new member, it’s important to stay informed about your benefits. Here are some additional resources:                             

• Forms and publications — Explore OPSRP newsletters and other publications.
• OPSRP education presentations — Sign up for in-person and virtual education sessions at any time in your career.
• Contact us — Find hours and contact information for Member Services, our member customer service unit.