Retirement Considerations, March 18, 2014
- 1. 1 Agenda PERS/OPSRP Overview Optional Retirement Plan (ORP) Overview Retiree Medical and Dental Insurance Medicare Ineligible Medicare Eligible Coverage while working
- 2. PERS Members Tier One: Hired before January 1, 1996 Tier Two: Hired January 1, 1996 through August 28, 2003 OPSRP Members Hired on or after August 29, 2003 2
- 3. HB 2020 (effective date of change January 1, 2004) No contributions to PERS member account after this date Member contributions of 6% to IAP paid by University of Oregon Oregon Investment Council provides investment oversight for IAP and PERS/OPSRP pension funds 3
- 4. Employer makes separate contributions to fund PERS/OPSRP Pension benefit is separate from IAP 4
- 5. PERS retiree receives IAP benefit, and chooses between thirteen options for PERS pension benefit OPSRP retiree receives IAP benefit, and chooses between five options for OPSRP pension benefits 5
- 6. Inactive member (withdrawal) Lump Sum PERS retiree (retirement) Lump Sum (mailed direct to member) Installments over 5-10-15-20 year period, or Anticipated Life Span Option Roll over to another tax sheltered plan (IRA, 403b, etc.) Must take IAP distribution when filing for pension benefits 6
- 7. 30 years PERS Total Creditable Service Time, or Age 58 – Tier 1 60 – Tier 2 Early retirement 55 7
- 8. Calculation Factors Age Service Time Final Average Salary Account balance 8
- 9. Full Formula Service time x final average salary x .0167 Money Match Age factor x account balance x 2 Formula + Annuity (Service prior to August 21, 1981) Service time x final average salary x .01 + Age factor x account balance Member receives benefit based on highest calculation 9
- 10. Normal retirement age Age 65, or Age 58 with 30 years of creditable service time Early retirement age 55 10
- 11. Benefit determined by formula Final average salary x years of service x 1.5% 11
- 12. Websites and email link for PERS website PERS: http://oregon.gov/PERS PERS Insurance: http://pershealth.com IAP account: https://iap.csplans.com Toll-free telephone numbers PERS 1-888-320-7377 or 503-598-7377 PERS Insurance 1-800-768-7377 or 503-224-7377 12
- 13. 13 Fund Sponsor Employer Contributions Employee Contributions (paid by UO) TIAA-CREF Varies 6% OUS – Fidelity Investments Varies 6% AIG Valic (closed after 10/07) Varies 6%
- 14. All monthly contributions directed to chosen fund sponsor Employee decides how funds are invested Employee can change fund sponsor once per year Actual investment returns credited by each mutual fund or annuity selected by participant Fund contributions and earnings grow and are available for withdrawal at termination or retirement No contributions will be made during the 5 years of the TRP 14
- 15. 15 ORP:tiaa-cref Teachers Insurance and Annuity Association – College Retirement Equities Fund http://www.tiaa-cref.org/ous (800) 842-2888 ORP:ous Fidelity Investments http://mysavingsatwork.com/ous (800) 343-0860 ORP:aig valic AIG VALIC http://aigvalic.com (800) 283-4892
- 16. Insurance coverage – Not working Medicare Ineligible Medicare Eligible Coverage while working 16
- 17. Public Employee Benefit Board (PEBB) Full Time and Retiree plans available on a self pay basis for retiree and eligible dependents PERS plans available to retiree and eligible dependents on a self pay basis; PERS Tier 1 and Tier 2 rates are subsidized 17
- 18. PERS Medicare Supplement and Medicare Advantage plans available to retirees (eligible for PERS benefit) and their eligible dependents Must be enrolled in Medicare Parts A (hospital) and B (physician and related services) Premiums can be deducted from PERS benefit payment or paid directly by retiree Non-PERS retirees can purchase Medicare Supplement or Medicare Advantage plans directly from carriers not affiliated with the PERS Retiree Health Insurance program. 18
- 19. Stop retiree insurance Re-enroll in University insurance program All employees pay 5% of the medical/vision, dental and basic life premiums. 19 March 2014