PERS/Individual Account Program (IAP)

Oregon PERS members will continue to participate in Oregon PERS and will also participate in the Individual Account Program (IAP) as of January 1, 2004. The retirement plan will consist of:

1) Oregon PERS
2) Individual Account Program (IAP)

Oregon PERS

• The University pays employer contributions into an employer reserve account to fund Oregon PERS benefits. The amount of the employer contribution does not determine the pension benefit.
• At retirement, monthly benefits are calculated using the money match or the full formula method. The formula is 1.67 percent x final average monthly salary (three highest calendar years or last 36 months of salary divided by 36) x years of service. Under money match, your PERS member account balance (not the IAP), is matched by an equal amount from your employer. PERS will use the method that produces the highest benefit.
• Employee contributions are not paid into employees' Oregon PERS accounts after January 1, 2004, because the six percent is paid into the IAP. The IAP will not be matched by employer monies at retirement. PERS members retain their existing PERS accounts.
• The normal retirement age for Tier One is age 58 or any time with 30 years of service and Tier Two is age 60 or any time with 30 years of service.
• Vesting occurs when an employee has been an active member of the Oregon PERS system in each of five calendar years or turns age 50 while in a qualifying position.
• Money already invested in the variable account will continue to earn at the variable rate. Employees cannot invest new money in the variable account after January 1, 2004.

Individual Account Program (IAP)

• The employee contribution to the IAP is six percent of gross salary. Contributions are made only for employees working 600 hours or more each calendar year.
• The University is currently paying the six percent employee contribution for its employees.
• Because of legislative changes, employee contributions will be made to the IAP instead of the Oregon PERS account after January 1, 2004. This means the six percent in the IAP will not be matched when an employee retires.
• The IAP is invested by the Oregon Investment Council.
• Employees vest in the IAP account on the date it is established.
• At retirement, employees may receive the IAP as a lump-sum payment or in equal installments over a 5, 10, 15 or 20-year period.

For more complete information, please review the PERS/Individual Account Program (IAP) Member Handbook.

PERS website: http://oregon.gov/PERS/. You may also contact PERS directly at 1-888-320-7377.