This webpage is for
Tier One or Tier Two members with employment after July 1, 2020 (you were hired before August 29, 2003).
If you are not working for a PERS-participating employer after July 1, 2020, or you have already retired, this is not relevant to you.
Watch PERS’ animated videos that explain the
two parts to your retirement and what changed with your Individual Account Program (IAP) under
Senate Bill (SB) 1049, starting July 1, 2020.
As a currently employed PERS member, regardless of when you were hired, you have
two parts to your future PERS retirement:
- Your lifetime, monthly pension benefit.
- Your
Individual Account Program (IAP).
Starting July 1, 2020, because of SB 1049, if your gross pay in a month exceeds the
monthly salary threshold, a
portion of your 6% IAP contributions is now redirected to the Employee Pension Stability Account
(EPSA). Your EPSA is used to pay for part of
your future pension benefit. These changes to your IAP contributions will not affect the amount you
will receive as your monthly pension benefit when you retire. This does mean less money is going into your
IAP.
Note: This video cites the monthly salary threshold in effect in 2020. The threshold is
subject to change annually under SB 1049. Find the current threshold in the “Member (IAP) Redirect”
section of our
Senate Bill 1049 (2019) – Member Information webpage.
Regardless of whether your 6% member contributions are paid by you or your employer, the redirect works as
follows:
The IAP Redirect is in effect when the PERS system is less than 90% funded*.
*The last official actuarial valuation shows that PERS' funded status including side accounts was 78.6% as
of December 31, 2019.
Your employer continues to submit 6% contributions to PERS (whether paid by you or your employer). Because the
“redirect” occurs behind the scenes in the PERS system, if your employer displays your 6% contributions on your
paystub, you likely will not notice any changes.
If you view your IAP balance on
IAP.Voya.com, you will eventually notice less
money going into your account due to the redirect. Keep in mind that due to routine reporting delays between your
employer, PERS, and Voya, the IAP third-party administrator, changes may not be immediately reflected.
PERS plans to display EPSA account information on your
Member Annual Statement, sent in May each
year.
Sign up
for GovDelivery email or text updates on Senate Bill 1049 to stay informed.
In addition to the SB 1049 voluntary contribution opportunity, as a public employee, additional avenues are available
to you to save for retirement:
-
All state agency employees (and local governments and school districts that have adopted the plan) can
participate in the Oregon Savings Growth
Plan, a 457(b) deferred compensation plan. You can save as little as $25 a month for retirement.
OSGP offers both pre-tax and after-tax (Roth) options. Find full details at
www.growyourtomorrow.com.
-
Your employer may have other 457 or 403(b) options that you can use to further save for retirement.
Under such programs, you may be able to contribute the exact amount of money you are comfortable saving (rather than
only 2.5% of your salary), and choose how you want that money invested.
Information about Senate Bill 1049 implementation is subject to change. This information may not apply to all situations.