Note: This webpage is intended to provide general information on Senate Bill (SB) 1049 (2019) and
may not address your specific situation. If you are considering retirement, you may want to contact
PERS for a benefit or speak with a financial adviser or other retirement planning professional.
Starting in 2020, if you are
employed less than 12 months in a calendar year, your subject salary will be limited based upon a
partial year average salary limit (including any eligible lump-sum payments for Tier One/Tier Two members).
The salary limit applies to all eligible PERS subject salary paid and reported to PERS by your employer — regular
pay, vacation payouts (if eligible), overtime pay, etc.
The changes under Senate Bill (SB) 1049 only affect how PERS calculates your pension and contributions to PERS. The
limit
does not impact the actual salary, wages, or payouts you receive from your employer.
Prior to 2020, only OPSRP members (those hired after August 28, 2003) were impacted by partial year salary limits.
Beginning January 1, 2020, partial year salary limits apply to all members (Tier One, Tier Two, and OPSRP).
Looking for information about the annual salary limit under SB 1049? Read our
SB 1049 Changes to PERS: Salary Limit webpage.
*The limit is indexed annually to the Consumer Price Index (CPI) [All Urban Consumers, West Region]. The Partial
Year Salary Limits chart will be updated each year.
Starting with calendar year 2020, if you have
less than 12 months of “active membership” in a calendar year (whether due to retiring or otherwise
leaving your PERS-covered position anytime
during the calendar year), your subject salary, as reported to PERS, could be limited by the partial
year salary limit.
You can calculate your partial year limit by counting the number of
months of active membership you have, divided by 12 months, and then multiply that fraction by the
annual salary limit in effect for that year. Use the chart below to find your partial year limit.
Partial year salary limits
| Months of active membership | 1
| 2 | 3 | 4 | 5 | 6 | 7 | 8
| 9 | 10 | 11 | 12 (full year) |
|---|
| Months you work ÷ 12 = proration factor | 0.083333 | 0.166667 | 0.250000 | 0.333333 | 0.416667 | 0.500000 | 0.583333 | 0.666667 | 0.750000 | 0.833333 | 0.916667 | 1.000000 |
|---|
| 2024 partial year limits | $19,414.59 | $38,829.41 | $58,244.00 | $77,658.59 | $97,073.41 | $116,488.00 | $135,902.59 | $155,317.41 | $174,732.00 | $194,146.59 | $213,561.41 | $232,976.00* |
|---|
*The limit is indexed annually to the Consumer Price Index (CPI) [All Urban Consumers, West Region]. The partial
year salary limits chart will be updated each year.
In short, your salary limit will be prorated based on the
number of months you are employed with a PERS-participating employer in a qualifying position during
that year. Any month in which you worked one day or more counts as a month.
For questions about what months count in active membership in a calendar year, see our
Partial year salary limit calculations page. Keep in mind your months of
active membership determine the partial year limit, not the number of payments you receive.
It is important that your PERS-participating employer
accurately reports to PERS your subject and nonsubject salary. Your employer is responsible for
designating your position as “active” and “qualifying.” Employers should use the
Payment CategoriesPartial Year Salary Limits: Information for Employer Reporters.
If your salary averages an amount that meets or exceeds your partial year salary limit, or if you are a Tier One/Tier
Two member anticipating a lump-sum payment in your final year of employment (see an example in
Final Average Salary in a Partial Year: Tier One/Tier Two, below), there is a
possibility, depending on how many months you work in your final year of employment, that a partial year limit
might impact the calculation of your final average salary.
If you are within two years of retirement eligibility (Tier One/Tier Two, OPSRP) you may request two written
benefit estimates per calendar year without charge. You may wish to request a written benefit estimate to understand
how your pension may be calculated (find the request form for
Tier One/Tier Two or
OPSRP members).
Please note that estimates created through your
Online Member Services (OMS) account
do not yet reflect the SB 1049 Salary Limit changes.
You can use the partial year salary limit chart below to see how the limits could impact you, depending on how many
months you work (“months of active membership”) in a partial year.
Partial year salary limits
| Months of active membership | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 (full year) |
|---|
| 2024 partial year limits | $19,414.59 | $38,829.41 | $58,244.00 | $77,658.59 | $97,073.41 | $116,488.00 | $135,902.59 | $155,317.41 | $174,732.00 | $194,146.59 | $213,561.41 | $232,976.00 |
|---|
Learn more about
final average salary (FAS)
for Tier One/Tier Two members.
In general, PERS always calculates your “high three calendar years” (Tier One/Tier Two members’ “high three” years do
not need to be consecutive)
and your total subject salary earned over the “last 36 months.” The
higher amount will be used in calculating your FAS.
NOTICE: If your salary averages an amount that meets or exceeds your partial year salary limit and you retire
early or mid-year, there is a
possibility that the partial year salary limit could impact your last 36 months of total subject
salary.
This possibility can be increased if you receive a lump-sum payment, such as a large vacation
payout.
ORS 238A.130 defines final average salary (FAS) rules for OPSRP members slightly differently than Tier One/Tier Two
members. In short, the high three years
must be consecutive calendar years, and OPSRP members’ lump-sum payments are
not included in subject salary.
OPSRP FAS will be whichever is greater of:
- The average salary per calendar year in
three consecutive calendar years
- The average salary in the last 36 months of employment
Because OPSRP members do not have any vacation or other lump-sum payments added to their FAS calculations,
unless you make more than your partial year salary limit (regular and overtime payments), OPSRP
members who earn high salaries are unlikely to be impacted by the partial year limits.
Some exceptions could apply - you should get a written estimate or speak with PERS Member Services if you think this
situation may apply to you:
- OPSRP member with a high salary who doesn’t work for a local government and receives three checks in 2023 but
works only in January and February (two months of active membership would be $37,588.91 partial year limit despite
getting three checks). Remember it is the “months of active membership” in a partial year,
not how many paychecks you receive.