| FAQs: OREGON PUBLIC SERVICE RETIREMENT PLAN (OPSRP) |
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What is OPSRP?
- The Oregon Public Service Retirement Plan was established by the legislature on August 29, 2003. PERS, the agency, administers OPSRP.
- OPSRP is a hybrid (defined contribution/defined benefit) pension plan with two components: the Pension Program (defined benefit) and the Individual Account Program (defined contribution).
What is a defined benefit plan?
- A defined benefit plan is benefit-based and uses predictable criteria such as a pension determined by salary x length of service x factor. This portion of OPSRP provides a life pension funded by employer contributions.
- The Pension Program has a normal retirement age of 65 (58 with 30 or more years of service) for general service members. And the Pension benefit is solely formula based, with a 1.5 percent factor for general service members.
What is a defined contribution plan?
- A defined contribution plan has no guarantee. Members make contributions; employers may or may not also make contributions. When a member retires, he or she receives the contributions plus any earnings or losses that have accrued.
What is an IAP account?
- Individual Account Program, the defined contribution portion of the plan applicable to service by all new hires, and to all active Tier One and Tier Two members.
- Beginning January 1, 2004, all PERS member contributions have been placed in the IAP.
How will this work for OPSRP members?
- OPSRP members contribute six percent of salary to the IAP, and employers may agree to pay the employee's six percent contribution.
Can members still put money into the variable account?
- Effective January 1, 2004, members may not contribute or transfer funds to the Variable Annuity Account. Those accounts continue to be credited with earnings or losses as they were previously.
When does an employee participate in OPSRP?
- An employee is eligible for membership in the OPSRP Pension Plan if any of the following criteria are met:
- Hired by a public employer participating in the OSPRP Pension Plan into a qualifying position on or after August 29, 2003.
- Has completed the waiting period of six full calendar months of employment, uninterrupted by more than 30 consecutive workdays.
- Has not established membership in the PERS Chapter 238 plan before August 29, 2003; and did not perform any period of service before August 29, 2003, that is creditable to the six-month waiting period required for membership in the PERS Chapter 238 plan.
- A person elected as a legislator for a term beginning on or after August 29, 2003, may elect to become a member of the OPSRP Pension Plan.
- A person elected or appointed to an office with a fixed term beginning on or after August 29, 2003, other than as a member of the Legislative Assembly or a person appointed by the Governor to an office as head of a department, will become a member of the OPSRP Pension Program unless they decline membership by giving the PERS Board written notice within 30 days after taking office.
- This election is irrevocable during the term of office for which the election is made.
- The elected / appointed official who does not decline membership in the OPSRP Pension Program will also become a member of the IAP.
Who is not eligible for OPSRP?
- Judges (a judge who is elected or appointed to office on or after August 29, 2003, becomes eligible for the PERS Chapter 238 plan under the rules established for that plan).
- Independent contractors.
- Aliens working under a training or educational visa.
- People who are provided sheltered employment or make-work by a public employer.
- Student workers as classified by the employer.
- An inmate of a state institution.
- Employees of foreign trade offices who live and perform services in foreign countries.
- Employees of OHSU actively participating in an alternative retirement program.
- Employees of the Oregon University System actively participating in an optional retirement plan.
Do all OPSRP members, including Tier One and Two PERS members, need to serve a new waiting period before contributions begin?
- An eligible employee who is employed in a qualifying position on or after August 29, 2003, by a public employer that is participating in OPSRP and who will not receive benefits under the PERS Tier One Tier Two (Chapter 238) plan becomes a member of the OPSRP Pension Program and IAP upon completion of a probationary period of six full calendar months of employment for the same employer
- If the employer only participates in the OPSRP IAP, the employee becomes a member of IAP.
- If the employer only participates in the OPSRP Pension Program, the employee becomes a member of OPSRP Pension Program.
- If the employer participates in both programs, the employee becomes a member of the OPSRP Pension Program and the IAP.
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