The Member Redirect program (introduced by Senate Bill 1049 (2019)) eases employer rates by requiring PERS members to contribute to their future pensions. PERS members whose qualifying salary in a month exceeds the monthly salary threshold in effect for that calendar year have a portion of their 6% Individual Account Program (IAP) contribution redirected to their Employee Pension Stability Account (EPSA). Each member’s invested EPSA will help fund their pension when they retire.
Redirected percentage
The amount redirected depends on the member’s PERS plan:
- Tier One/Two members — the redirected amount is 2.5% of salary subject to IAP contributions*. The remaining 3.5% is deposited into the member’s IAP account.
- OPSRP members — the redirected amount is 0.75% of salary subject to IAP contributions*. The remaining 5.25% is deposited into the member’s IAP account.
*Salary that is subject to PERS pension and IAP contributions and included in calculating PERS retirement benefits is categorized as “subject salary.” Payments that are not subject to PERS contributions nor used in benefits calculation are called “non-subject salary.” Refer to the
Payment Categories chart to find how different types of payments are categorized.
Member Redirect salary threshold
2024 salary threshold:
$3,688/month
2023 salary threshold: $3,570/month
2022 salary threshold: $3,333/month
2021 salary threshold: $2,535/month
2020 salary threshold: $2,500/month**
**First year of the program.
Voluntary contributions — member signup
PERS members have the option to make up the redirected amount by choosing to make after-tax “voluntary contributions” to their IAP account. Members choose to start and stop voluntary contributions through their Online Member Services (OMS) account. Instructions are listed on the
How to Elect and Update IAP Voluntary Contributions Online webpage.
Voluntary contributions — employer responsibilities
For instructions, go to the
How to Manage an Employee’s Voluntary Contribution webpage.
Member Redirect offset
You can see the effect of Member Redirect in the Executive Summary section of your organization’s actuarial valuation, as shown in the sample valuation below.
Resources
Employee Pension Stability Account (EPSA) webpage for members
Tier One/Tier Two members webpage (for employees hired before August 29, 2003)
OPSRP members webpage (for employees hired after August 28, 2003)
How to Manage an Employee’s Voluntary Contribution
Frequently Asked Questions on Voluntary Contributions for Employers
Member Redirect Voluntary Contributions Process Map: Employer View