Public Employees’ Retirement System (PERS) Updates 

***PERS Update - For Informational Purposes Only***

This information is being provided to assist employees in researching, reviewing, and evaluating how proprosed PERS reform and/or changes may impact their retirement benefits. 

Employees are responsible for researching, verifying, and evaluating how these changes and reform measures may impact them and their retirement benefits. 

OSU is NOT providing legal interpretation of the PERS reform and/or changes and cannot evaluate how these changes may impact an individual employee’s retirement benefits.

There are multiple bills that have been introduced in the 2017 legislative session dealing with retirement programs.  Below are some of the bills that may impact the PERS programs.  You are encouraged to research and monitor PERS legislation to determine how these changes may impact you.

To follow these bills and/or any of the other bills in currently in the Legislature, viste the Oregon State Legislative website.

To search bills - In the "Search Bills" box (right handside of page)

  • enter "retirement"
  • then refine search by selecting

 

2017 PERS Proposed Legislation - Senate Bill 309

Senate Bill 309:  Eliminates option of members of individual account program of Public Employees Retirement System to receive distributions as installment payments upon retirement.  Requires members retiring on or after January 1, 2019, to receive distributions as lump sum.  [PERS Tier 1, Tier 2 and OPSRP]

 

2017 PERS Proposed Legislation - Senate Bill 559

Senate Bill 559:  Changes calculation of final average salary for purposes of Public Employees Retirement System to use five years of salary instead of three years, for salary paid on and after January 1, 2018.  Directs Public Employees Retirement Board to recalculate employer contribution rates to reflect savings attributable to Act. Provides for expedited review of Act by Supreme Court upon petition by adversely affected party. Declares emergency, effective on passage. [PERS Tier 1, Tier 2 and OPSRP][Full Formula or Full Formula+Annuity]

  • The full text of bill
  • Public Hearing held 2/13/2017, no further action has been scheduled as of 3.29.2017

 

2017 PERS Proposed Legislation - Senate Bill 560

Senate Bill 560:  Redirects employee contributions made by member of system from individual account program to account to be used to pay for member's pension or other retirement benefits accrued on or after January 1, 2018.  For years beginning in 2018, caps at $100,000 annual salary used to calculate final average salary for purposes of Public Employees Retirement System. Directs Public Employees Retirement Board to recalculate employer contribution rates to reflect savings attributable to Act. Provides for expedited review of Act by Supreme Court upon petition by adversely affected party. Declares emergency, effective on passage. Excludes Judges from the $100,000 limit. [PERS Tier 1, Tier 2 and OPSRP] [Average Ending Salary: Full Formula or Full Formula+Annuity][IAP: all plans]

NEW:  Senate Bill Admendments added 3.15.2017:  reduces Tier 1/2 pension multiplier from 1.67% to 1.00%; Tier 1 - reduces "assumed rate" from 7.5% to 3.5%; Tier 1/2 - eliminates unused sick leave and/or vacation lump-sum payout from the calculation of average ending salary; OPSRP minimum retirement age increased to age 67 from age 65; New employees - increases "wait time" from 6 months to 12 months to become members; Current and new employees - changes definition of qualifying positions from 600 hours in calendar year to 1,000 hours in calendar year.

 

2017 PERS Proposed Legislation - Senate Bill 791

Senate Bill 791:  Eliminates limitations on hours that may be worked by a retired member of Public Employees Retirement System without suspension of retirement benefits.  A person who retires under the provisions of ORS 238.280 (1), (2) or (3) may be employed under this section only if the person's date of retirement is more than six months before the date the person is employed under this section.   [PERS Tier 1, Tier 2 and PERS OPSRP]

  • The full text of bill
  • Public Hearing held 3.6.2016 @3pm
  • No further action has been scheduled as of 3.29.2017

 

2017 PERS Proposed Legislation - Senate Bill 913

Senate Bill 913:  Changes various provisions to Public Employee Retirement System.  Assumed Rate - lesser of rate rate set by the PERS Board or the current rate for valuing annuity benefits by the federal Pension Benefit Guaranty Corporation [impacts Tier 1 Money Match formula] - Actuarial equivalency factor tables adopted under this section become effective on January 1 of the calendar year following adoption of the tables by the board or on another date sepcified by the boardReitrement Age for members establishing membership after the effective date of bill (effective on passage):  OPSRP Regular Retirement Age increased to age 67 from age 65,  OSRP Early Retirment age increased from age 55 to age 57.  Redirects Employee Contributions (6% IAP account contributions) to a member pension contribution account and will be applied to the cost of the pension or other retirement benefits payable.  Employer may not make (pick-up) the employee contribution on or after the later of January 1, 2018 or the expiration of any collective bargaining agreement in effect on Janaury 1, 2018.  Calculation of Final Average Salary - changes to 5 years or final 60 months [Pers Tier 1, Tier 2, PERS OPSRP].  Declared an Emergency, bill effective upon passage.

 

2017 PERS Proposed Legislation - House Bill 3013

House Bill 3013:  Changes various provisions to Public Employee Retirement System.  Assumed Rate - lesser of rate rate set by the PERS Board or the current rate for valuing annuity benefits by the federal Pension Benefit Guaranty Corporation [impacts Tier 1 Money Match formula] - Actuarial equivalency factor tables adopted under this section become effective on January 1 of the calendar year following adoption of the tables by the board or on another date sepcified by the board.  Declared an Emergency, bill effective upon passage.

2017  PERS and Legislative Analysis of Bills and/or Admendments

RESOURCES

 

HOW TO SEARCH LEGISLATIVE BILLS

  • Go to the Oregon State Legislature website
  • From the "Bills and Laws" tab,
  • Select  "Current Session Details"
  • Select "Bills" icon (in the top blue header)
  • Type in word/phrase to search; or
  • If you know the bill number, select it from the list of Senate or House bills

HOW TO CALCULATE YOUR PERS PENSION BENEFIT

  • Request written estimate:
    • Form
    • Use the written benefit estimate request if your pension estimate needs to be processed by the PERS divorce unit
    • Maximum vacation payout for an Unclassified employee is 180 hours
    • OSU does participate in the PERS sick leave program
    • Retirement date is always the first of the month, regardless of last day worked
    • ORP members –
      • use salary data from date last in a PERS position
      • use sick leave balance at the time membership changed from PERS to ORP (i.e., 1996)
      • do NOT use a vacation balance because unused vacation (if applicable) was not paid out when you changed to the ORP pension program
  • Fax (503-598-0561) or mail form directly to PERS
  • PERS processes request in the order of retirement date (not in the order requests are received).  Recommend using the earliest retirement date possible.
  • Online Pension Estimate
    • >click on Online Member Services
    • > Select “Log In”
    • >"Open a New Account" and then login. 
    • > You're now on the Account Home Page. 
    • > Scroll down and click on "Member" in the "Account Plan" section, you are now on the Account Summary Page.
    • > Click on "Benefit Estimate" (on the left hand side of the screen)
    • > Click on "Create a New Benefit Estimate", the system will ask a series of questions (i.e., retirement date, beneficiary, etc.)