Retirement

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There are two phases to retirement: saving and retiring. In the saving phase, Portland State University employees have several retirement plan options. Two pension plans and two voluntary retirement savings plans offer a broad range of choices to work toward a comfortable retirement. When an employee is ready to retire, there are several steps and some information they should be aware of to make a smooth transition into retirement.

Retirement Plan Options

Portland State employees have access to multiple retirement savings options based upon date of hire, position group, and personal preference.

Mandatory Retirement Plans

Eligibility Requirements: All employees, with the exception of students, graduate assistants, and employees on a J1, J2, or F1 visa, are eligible to participate in the Pension 401a plan after completing six full months and 600 hours based on hiring intent. See below for position-specific details about pension options.

Public Employees Retirement System (PERS) - also called Oregon Public Service Retirement Plan (OPSRP).

Administered by the State of Oregon, PERS is a retirement pension program open only to public sector employees in the State of Oregon. Participating employees can still be eligible for participation in the 403(b). Please see the PERS website for the most up to date information regarding this option.

Optional Retirement Plan (ORP)

A Pension alternative for academic and administrative unclassified employees, which is designed to provide choice and portability of retirement investments. Eligible employees may participate in the ORP in lieu of PERS.

Voluntary Retirement Plans

Eligibility Requirements: All employees, with the exception of students, graduate assistants, and employees on a J1, J2, or F1 visa, are eligible to participate in voluntary retirement savings programs through Portland State. Contributions are made by the employee. Employer matching contributions are available for ORP Tier 4 employees only.

Tax-Deferred Investment 403(b) Plan

A voluntary retirement savings plan for employees in classified and unclassified positions, the 403(b) provides pre-tax and post-tax savings for retirement.* The 403(b) can be used in addition to the basic pension, and by eligible employees regardless of whether they participate in the ORP or PERS.

* Plan Providers offer Roth (post-tax) savings options as well.

Oregon Savings Growth Plan (OSGP) 457(b)

In addition to the 403(b), OSGP provides voluntary pre- and post-tax retirement savings options to public employees in the State of Oregon. Please see the OSGP website for the most up to date information regarding this option.

Complete the online form 403(b) Voluntary Savings Form.

Voluntary Retirement Plans

Eligibility Criteria by Position Type

Unclassified: Employees in unclassified positions must make a one-time irrevocable decision within six months between Public Employees Retirement System (PERS) / Oregon Public Service Retirement Plan (OPSRP) and the Optional Retirement Plan (ORP). Failure to decide by this deadline will result in a default to the PERS/OPSRP plan.

Classified: PERS Contributions for employees in classified positions begin once eligible and no action is needed.

Postdoc: After completing the eligibility period, Portland State will match up to 4% of the postdoc scholar’s monthly salary, based on the contributions made to the 403(b) Plan by the participant.

Postdoc employees that transfer to an unclassified position will need to make a one-time irrevocable decision within six months of transferring, between Public Employees Retirement System (PERS) /Oregon Public Service Retirement Plan (OPSRP) and the Optional Retirement Plan (ORP). Failure to decide by this deadline will result in a default to the PERS/OPSRP plan.

Transferring Classifications:

Employees who move from a classified position to an unclassified position will be able to choose to remain in PERS/OPSRP or switch to the Optional Retirement Plan (ORP) after completing six months in the unclassified position.
Employees who move from a unclassified position to an classified position will forever remain in the retirement plan they have elected or defaulted into.

Retirement Pension Plan Definitions

PERS/OPSRP (Oregon Public Service Retirement Plan)

Must work a minimum of 600 hours in a calendar year to maintain eligibility.

Rolling other retirement funds in, rolling any funds out.

Employee Contribution: Portland State University pays contributions equalling 6% of gross salary (vests immediately). This individual account program (IAP) is managed by the Oregon Investment Council through PERS.

Beginning July 1, 2020, if you earn more than the monthly salary threshold, 5.25% is going into your IAP due to Senate Bill (SB) 1049. 0.75% is redirected to the employee pension stability account. Learn more about the Employee Pension Stability Account.

Employer Contribution: Portland State University pays each month into a defined benefit pension plan. Pension benefits are based on a formula: 1.5 percent multiplied by years of retirement credit multiplied by final average salary. (Vesting after 5 years of contributions or age 65)

Employees who are already active PERS Tier 1 or Tier 2/OPSRP members may be eligible to have contributions begin upon hire and remain in current tier status. Please contact the HR Retirement team at retirement@pdx.edu for details.

Plan Information

Tier One: Employees hired into a qualifying position on or before December 31, 1995

Tier Two - Employees hired into a qualifying position between January 1, 1996 and August 28, 2003.

OPSRP: For employees hired on or after August 29, 2003.

Oregon PERS Member Pages

ORP (Optional Retirement Plan) Tier 4

Once eligibility is established, a 600 hours minimum is no longer required.

Employee Contribution: Portland State University matches 1% - 4% of gross monthly salary each month depending on employee contributions to a 403b plan (both employee and matching contributions vest immediately).

Employer Contribution: Portland State University pays 8% of gross monthly salary each month. (Vests after 2 contribution years or age 50).

ORP Participants

TIAA (Teachers Insurance and Annuity Association)

TIAA Website
800-842-2888
Plan ID: 101528

Fidelity Investments

Fidelity Investments Website
Plan ID: 71681

Already active PERS Tier 1 or Tier 2/OPSRP member contributions will begin upon hire. Employees are still eligible, after six full months, to make the decision to remain with PERS/OPSRP or switch to the ORP.

Note: Employees of the University on an Educational Visa (J-1, F-1, etc.) are not eligible to participate in the retirement program per Oregon Revised Statute 238.015(4) and Oregon Administrative Rule 459.010.0025(1) however may participate in a voluntary retirement savings plan.

Voluntary Retirement Plans

Voluntary Retirement Plan Definitions

Contribution limits: Employees may contribute an annual limit of $23,500 (age up to 49) or $31,000 (age 50 or older). Annual limits in both the 403(b) and the 457(b) may be maxed out. PSU will automatically stop the deductions once they have reached the IRS limit. You may max out both plans for total contributions of $47,000 (age up to 49) and $62,000 (age 50 or older).

Comparison of the Oregon Public Universities Retirement Plan 403(b) Plan and the Oregon Savings Growth Plan (OSGP) 457(b) Plan

Tax-Deferred Investment 403(B) Plan

The Tax-Deferred Investment 403(b) Plan is a supplementary retirement savings plan available to Oregon Public Universities employees. Participants' voluntary salary deferrals allow them to reduce their taxable income through payroll deduction for investment in various funds. Participants have a choice of investments-plus-services programs to suit their individual retirement planning needs.

See the 403(b) Plan Guide for additional information.

Contributions can be made pre-tax or Roth
Contributions are between 1%-85% of gross monthly income (minimum 25.00 per month)
Participates can start/stop/change contributions each month
Deadline for the current pay period is the 10th

Enrollment Steps

Complete the online form 403(b) Voluntary Savings Form
1. Change contribution percentage here
2. Stop deduction by indicating "0" amount here
Select where you want your money invested. Begin by opening an account with either of the following vendors:

Oregon Savings Growth Plan 457(B) Plan

The Oregon Savings Growth Plan (OSGP) is offered to Oregon public employees by PERS. The Oregon Investment Council manages a selection of investments on behalf of participants in the plan.

Contributions can be made pre-tax or Roth
Contributions are between 1%-85% of gross monthly income (minimum 25.00 per month)
Managed fund with 9 investment options
No penalty for early withdrawal
Participates can start/stop/change contributions each month
Deadline is the 25th of the previous month

See the PERS website for information on how to enroll/increase or decrease contributions in the OSGP.

Plan ID: 350001
800-365-8494
Plan Code: PSU - 58090

Attend a workshop to learn more.

Retirement Plan Resources

PERS/OPSRP Resources

PERS/OPSRP offers a variety of education sessions to assist members with the planning and preparation process.

Oregon Savings Growth Plan 457(B) Plan

The Oregon Savings Growth Plan (OSGP) is offered to Oregon public employees by PERS. The Oregon Investment Council manages a selection of investments on behalf of participants in the plan.

Attend a workshop to learn more.

ORP/403b Resources

Plan administrators for ORP plans provide educational materials and information on their websites.

Meet With Retirement Consultants

Retirement consultants are available to meet either virtually or by phone. They are here to assist in establishing a retirement portfolio or to make sure that employees are on track for retirement.

To meet with a TIAA representative make an appointment online or call 800-732-8353

To meet with a Fidelity representative make an appointment online or call Ronald Elia at 800-642-7131

To meet with an Oregon Savings Growth Plan representative make an appointment online or call Tim Ertz Tel: 503-789-9216

Ready For Retirement

Retirement is an exciting opportunity to look forward to new opportunities and lifestyle choices. It can also be a time of significant change and adjustments. Whether retirement comes as expected, or earlier or later than anticipated, the University encourages employees to plan carefully for the event.

Things to consider:

Finances
Health Care Needs
Legal Documentations
Emotional Aspects of Retirement
Post Retirement Employment
Caring For Family

Retirement Timeline

Time to retire	Things to do
3-5 years	Identify a realistic retirement date Retirement Income
1-2 years	Make a retirement folder Obtain retirement income estimate Create a budget for retirement
6 months	Obtain retirement income estimate Identify health care options Identify when PSU insurance ends
90 days	PERS 1, 2 OPSRP retirement Checklist ORP retirement Checklist Submit required forms to PERS (if applicable) Submit resignation letter to your department and a copy to human resources
30 days	Complete separation/transfer form Employee Exit Checklist Identify when PSU insurance ends Submit final leave to payroll@pdx.edu

Identifying a Realistic Retirement Date

Eligibility to retire depends on a variety of factors including:

Age
Years of service
Retirement plan enrollment

Below are listed the general retirement requirements under each plan. Meeting the criteria ensures that there is no reduction in retirement benefits.

PERS Tier 1

Normal retirement age 58, or
30 or more qualifying service years

PERS Tier 2

Normal retirement age 60, or
30 or more qualifying service years

PERS/OPSRP

Normal retirement age 65, or
30 or more qualifying service years

ORP

Termination of employment, retirement. death, disability, or plan termination (consult with individual plan for tax implications)

Resources

Retirement Income

Retirement income includes payments received from retirement savings plans and social security and may also include income from other types of established investments maintained over the years. It is important to conduct a comprehensive overview of assets to determine all sources of income available in retirement.

The following links can assist with estimating retirement income:

PERS Members

Determine Defined Benefit:
- Obtain preliminary on-line and written PERS estimate or account balance. Social security number, hourly and monthly pay information, as well as sick and vacation hours (leave balances available in Banweb) are required. Visit the PERS website to obtain online and written estimates.
Obtain PERS IAP Balance:
- Call PERS at 1-888-320-7377
- Setting-up online access to an IAP account requires requesting a password. PERS will mail the password.

ORP Members

Obtain ORP Plan Account Balance:
- Fidelity/Oregon Public Universities
- TIAA-CREF/Oregon Public Universities

Social Security

Research Social Security Benefits

Retiree Health Insurance

PEBB sponsored retiree health care benefits (COBRA) are available for pre-Medicare retirees.

PEBB sponsored benefits fact sheet

PERS Health Plan for Tier 1 and 2 and OPSRP retirees (if applicable) Employees eligible to receive PERS retirement benefits may also be eligible for PERS Retiree Health Care Benefits including pre-Medicare and Medicare coverage.

Medicare Employees are not required to enroll in Medicare at age 65 if they are still covered under PSU employer-paid health coverage. Employees who do not enroll due to current coverage, have eight months to enroll (special enrollment period) upon separation of employment. Please have the PSU HR office complete a CMS-L564E form

Senior Health Insurance Benefits Assistance (SHIBA) - A state group that coordinates resources and provides answers for retirees regarding health care options.

Search for other health care options

Medicare

Visit the Medicare website and Medicare and You to access a large amount of information and answers to questions.

The following links are intended to help explain the costs of Medicare:

When to Sign up for Medicare

Active Employees:

Under 65 - PSU does not require Medicare enrollment and employees may sign up later during a Special Enrollment Period without a Late Enrollment Penalty.

Over 65 - The employee does not need to do anything until they (or their spouse) retires or they lose the coverage if both of these apply

Separating/Retiring:

PERS Tier 1/ Tier 2 members - Employees need to sign up for both Medicare Part A and B to get a $60 subsidy. Visit the PERS website for more information on the PERS Health Insurance Program.

Sign up for Medicare - During a Special Enrollment Period without a Late Enrollment Penalty.

Emeritus-Emerita Information

For information regarding application for Emeritus-Emerita benefits click here.

Additional Resources: