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Estimated Payment Criteria As Of April 1, 2005
PERS will continue to make estimated payments on retirements until the Oregon Supreme Court issues its decision in the City of Eugene case, also known as the Lipscomb case. The following criteria will be used to calculate a retirement benefit for an effective retirement date of April 1, 2005 or beyond until that decision is issued by the Court.
Tier One Regular Account
- Recalculate the regular account balance using 11.33 percent earnings for 1999,
then compound the account balance forward to the retirement date adding
annual contributions and using 8 percent as the earnings rate for 2000, 2001, 2002,
2003, and 2004.
- Use the latest year-to-date factor to credit earnings for 2005 (a pro-rate of the assumed
rate, currently 8 percent) up to the effective retirement date.
Tier Two Regular Account
- Use 12 percent as the estimated rate for 2004.
- Use the latest year-to-date factor to credit earnings for 2005. This factor will be set by
PERS and will represent year-to-date investment gains or losses up to the effective
retirement date.
Variable Account
- Use 13 percent as the estimated rate for 2004.
- Use the latest year-to-date factor to credit earnings for 2005. This factor will be set by
PERS and will represent year-to-date investment gains or losses in the Variable Annuity
Account up to the effective retirement date.
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