University of Oregon 2019 Annual Financial Report
Notes to the Financial Statements
For the Year Ended June 30, 2019 (dollars in thousands)
fire member benefits are reduced if retirement occurs prior
to age 55 with fewer than 25 years of service. Tier Two
members are eligible for full benefits at age 60.
2. Death Benefits. Upon the death of a non-retired member,
the beneficiary receives a lump-sum payout of the member's
account balance (accumulated contributions and interest).
In addition, the beneficiary will receive a lump-sum
payment from employer funds equal to the account balance,
provided one or more of the following conditions are met:
• Member was employed by a PERS employer at the time
of death,
• Member died within 120 days after termination of PERS-
covered employment,
• Member died as a result of injury sustained while
employed in a PERS-covered job, or
• Member was on an official leave of absence from a PERS-
covered job at the time of death.
3. Disability Benefits. A member with 10 or more years of
creditable service who becomes disabled from other than
duty-connected causes may receive a non-duty disability
benefit. A disability resulting from a job-incurred injury or
illness qualifies a member for disability benefits regardless
of the length of PERS-covered service. Upon qualifying
for either a non-duty or duty disability, service time is
computed to age 58 (55 for police and fire members) when
determining the monthly benefit.
4. Benefit Changes After Retirement. Members may choose
to continue participation in a variable equities investment
account after retiring and may experience annual benefit
fluctuations due to changes in the market value of equity
investments.
Under ORS 238.360 monthly benefits are adjusted annually
through cost-of-living adjustments (COLA). If the member's
annual benefit is $60 or less, the benefit shall be increased
by 1.25 percent. Members with annual benefits more
than $60, the benefit shall be increased by $0.75 plus 0.15
percent of the amount of the annual benefit exceeding $60.
Oregon Public Service Retirement Plan (OPSRP)
Pension Program
1. Pension Benefits. The OPSRP provides a life pension
funded by employer contributions to members hired on
or after August 29, 2003. Benefits are calculated with
the following formula for members who attain normal
retirement age:
General service: 1.5 percent is multiplied by the number
of years of service and the final average salary. Normal
retirement age for general service members is age 65, or age
58 with 30 years of retirement credit.
Police and fire: 1.8 percent is multiplied by the number
of years of service and the final average salary. Normal
retirement age for police and fire members is age 60 or age
53 with 25 years of retirement credit. To be classified as
a police and fire member, the individual must have been
employed continuously as a police and fire member for at
least five years immediately preceding retirement.
A member of the OPSRP pension program becomes vested
on the earliest of the following dates: the date the member
completes 600 hours of service in each of five calendar
years; the date the member reaches normal retirement age;
if the pension program is terminated, the date on which
termination becomes effective.
2. Death Benefits. Upon the death of a non-retired member,
the spouse or other person who is constitutionally required
to be treated in the same manner as the spouse, receives for
life 50 percent of the pension that would otherwise have
been paid to the deceased member.
3. Disability Benefits. A member who has accrued 10
or more years of retirement credits before the member
becomes disabled, or a member who becomes disabled due
to job-related injury shall receive a disability benefit of 45
percent of the member's salary determined as of the last
full month of employment before the disability occurred.
4. Benefit Changes after Retirement. Under ORS 238A.210
monthly benefits are adjusted annually through COLAs.
If the member's annual benefit is $60 or less, the benefit
shall be increased by 1.25 percent. Members with annual
benefits more than $60, the benefit shall be increased by
$0.75 plus 0.15 percent of the amount of the annual benefit
exceeding $60.
Contributions
PERS funding policy provides for monthly employer
contributions at actuarially-determined rates. These
contributions, expressed as a percentage of covered
payroll, are intended to accumulate sufficient assets to
pay benefits when due. This funding policy applies to the
PERS Defined Benefit Plan and the Other Postemployment
Benefit Plans. Contribution rates are reviewed bi-annually.
Actuarial Valuations
The following methods and assumptions were used in
the development of the total pension liability:
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