As an OPSRP member, you have two parts to your retirement: a pension and an
Individual Account Program (IAP) account. (Also read about the
Employee Pension Stability Account and how it relates to PERS pension benefits.)
PERS uses formulas to determine the pension benefits that OPSRP members receive in retirement.
For the time spent in a hazardous position, PERS will use the following pension benefit calculation once the Hazardous Position classification is fully implemented in 2030:
- 1.8% x years of total retirement credit in a hazardous position x final average salary
Calculations for the Hazardous Position classification are similar to the Police and Firefighter classification in that they both use 1.8%. General Service uses 1.5% instead. (Read the “Effective dates and implementation” section for more information about calculations for hazardous positions between January 1, 2019, and January 1, 2030.)
The following table further compares the three member classification types:
| Hazardous Position | General Service | Police and Firefighter |
---|
Normal retirement age | 60
(or age 58 with 25 years of service) | 65
(or age 58 with 30 years of service) | 55 (or age 53 with 25 years of service) |
Early retirement age | 55* | 55*
| 50* |
Additional notes about retirement | The retirement credit in the last 60 months before you are eligible for a
hazardous position retirement (whether early or normal age) must be classified as a hazardous position. | — | The retirement credit in the last 60 months before you are eligible for
P&F retirement (whether early or normal age) must be classified as P&F. |
*General Service, Police and Firefighter, and Hazardous Position retirees who retire early will have their pension benefit reduced by a percentage based on actuarial data, which takes life expectancy into account. The reduction occurs because early retirees receive pension benefits over a longer period of time than those who retire at the normal age.
Examples
The following are example calculations, given two situations.
These examples are general and may not apply to your situation.
Example 1 — Member worked only in a hazardous position
Final average salary: $3,750 per month
Retirement credit in a hazardous position: 25 years
Convert 1.8% for ease of multiplication: 1.8% ÷ 100% = 0.018
0.018 × 25 × $3,750 = $1,687.5 per month in pension income
Example 2 — Member worked in a general service position and then in a hazardous position
Final average salary: $3,750 per month
Retirement credit in a general service position: 15 years
Retirement credit in a hazardous position: 10 years
Use 1.5% for General Service: 1.5% ÷ 100% = 0.015
0.015 × 15 × $3,750 = $843.75
Use 1.8% for Hazardous Position: 1.8% ÷ 100% = 0.018
0.018 × 10 × $3,750 = $675
Combine General Service and Hazardous Position: $843.75 + $675 = $1,518.75 per month in pension income