Oregon Public Service Retirement Plan

After six full months of employment in a qualifying position, employees who are hired on or after August 29, 2003 and are not members of Oregon PERS are required to become members of the Oregon Public Service Retirement Plan (OPSRP). The OPSRP is made up of two programs, a defined contribution and a defined benefit plan (both pay a benefit at retirement).

1. OPSRP Individual Account Program, the defined contribution plan and
2. OPSRP Pension Program, the defined benefit plan

OPSRP Individual Account Program (IAP)

• This is a defined contribution plan which means it provides no guaranteed retirement income. When employees retire, they receive contributions plus earnings and losses.
• The employee contribution for the OPSRP 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.
• The six percent is paid into the employee's IAP and the money 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.
  

OPSRP Pension Program

• This is a defined benefit plan which means it uses predictable criteria to determine retirement income.
• The University must pay employer contributions into an employer reserve account to fund the OPSRP Pension Program. The amount of the employer contribution does not determine the pension benefit.
• At retirement, monthly benefits are calculated based on a formula: 1.5 percent x final average salary x years of service.
• Final average salary is the greater of the average high three consecutive years or 1/3 of the salary earned in the last 36 months of membership.
• The normal retirement age is 65 or age 58 with 30 years of qualifying service. Employees earn one year of credit for each calendar year they work full-time (pro-rated if part-time).
• Vesting occurs when the employee reaches normal retirement age, age 65 or completes five years of qualifying service (600 or more hours of service in a calendar year).

For more complete information, please review the Oregon Public Service Retirement Plan (OPSRP) Member Handbook