Last modified: 07/28/2014 02:35 PM
HR: Oregon PERS and the Oregon Public Service Retirement Plan
Oregon PERS members who incur a break in service* on or after August 29,
2003, continue to participate in Oregon PERS prior to the break and then
participate in the Oregon Public Service Retirement Plan (OPSRP) after the
break. The OPSRP has two components: the Pension Program and the Individual
Account Program. Their retirement plan will consist of:
1) Oregon PERS
2) OPSRP Pension Program
3) OPSRP Individual Account Program (IAP)
Oregon PERS (prior to break in service)
- The normal retirement age for Tier One is age 58 or any time with 30 years
of service and Tier Two is age 60 or any time with 30 years of service.
- Vesting occurs when the employee has been an active member of the Oregon
PERS system in each of five calendar years or turns age 50 while in a
- Money already invested in the variable account will continue to earn at
the variable rate.
- At retirement, monthly benefits are calculated using the money match or
the full formula method. The formula is 1.67 percent x final average monthly
salary x years of service. PERS will use the method that produces the highest
OPSRP Pension Program
- The University must pay employer contributions into an employer reserve
account to fund the pension program. The amount of the employer contribution does not determine
the pension benefit.
- At retirement, monthly benefits are calculated based on a formula: 1.5
percent x final average monthly salary x years of service while in the
- Vesting occurs when the employee reaches normal retirement, age 65, or completes
five years of qualifying service (600 or more hours of service in a calendar
- The normal retirement age is 65 or age 58 with 30 years of qualifying
OPSRP Individual Account Program (IAP)
- The employee contribution to the IAP is six percent of gross salary. Contributions
are made only for employees working 600 hours or more each calendar year.
- The University is currently paying the six percent employee contribution
for its employees.
- The IAP is invested by the Oregon Investment Council.
- Employees vest in the IAP account on the date it is established.
- At retirement, employees may receive the IAP as a lump-sum payment or in
equal installments over a 5, 10, 15 or 20-year period.
Oregon Public Service Retirement Plan (OPSRP) Member Handbook
PERS/Individual Account Program (IAP) Member Handbook