University of Oregon 2019 Annual Financial Report slide image

University of Oregon 2019 Annual Financial Report

Notes to the Financial Statements For the Year Ended June 30, 2019 (dollars in thousands) 11. Government Appropriations Government appropriations comprised the following: General Operations June 30, 2019 Debt Service Total $ 71,910 $ 1,972 $ 73,882 515 State General Fund State Lottery Funding Total Appropriations $ 515 72,425 $ 1,972 $ 74,397 June 30, 2018 General Operations Debt Service Total State General Fund State Lottery Funding Total Appropriations $ 70,211 $ 1,972 $ 515 $ 70,726 $ 1,972 $ 12. Pension and OPEB Liabilities 72,183 515 72,698 The UO participates in multiple employer pension and OPEB plans. The following table presents the university's proportion of the liabilities: June 30, 2019 June 30, 2018 Net OPEB Liability (RHIPA) $ Total OPEB Liability (PEBB) Net Pension Liability 2,210 $ 13,135 305,554 3,777 12,221 298,606 Net Pension & OPEB Liabilities $ 320,899 $ 314,604 13. Employee Retirement Plans The UO offers various retirement plans to qualified employees as described below. Oregon Public Employees Retirement System-Oregon Public Service Retirement Plan General information about the Pension Plan Name of the pension plan: The Oregon Public Employees Retirement System (PERS) is a cost-sharing multiple- employer defined benefit plan. Plan description: Eligible employees of the UO, except those who select the Optional Retirement Plan (ORP), are provided with pensions through PERS. PERS memberships prior to January 1, 1996 are Tier One members. The 1995 Oregon Legislature enacted Chapter 654, Section 3, Oregon Laws 1995, which has been codified into ORS 238.435. This legislation created a second tier of benefits for those who established membership on or after January 1, 1996. The second tier does not have the Tier One assumed earnings rate guarantee and has a higher normal retirement age of 60, compared to 58 for Tier One. Both Tier One and Tier Two are defined benefit plans. The ORS Chapter 238 Defined Benefit Pension Plan is closed to new members hired on or after August 29, 2003. The 2003 Legislature enacted HB 2020, codified as ORS 238A, which created the Oregon Public Service Retirement Plan (OPSRP). OPSRP consists of the Pension Program Defined Benefit (DB) and the Individual Account Program (IAP). The IAP is a defined contribution plan. Membership includes public employees hired on or after August 29, 2003. Beginning January 1, 2004, PERS active Tier One and Tier Two members became members of IAP of OPSRP. PERS members retained their existing Defined Benefit Plan accounts, but member contributions are now deposited into the member's IAP account, not into the member's Defined Benefit Plan account. Accounts are credited with earnings and losses, net of administrative expenses. OPSRP is part of PERS and is administered by the PERS Board. PERS issues a publicly available financial report that can be obtained at: www.oregon.gov/pers/Pages/Financials/ Actuarial-Financial-Information.aspx. Benefits provided under Chapter 238- Tier One/Tier Two 1. Pension Benefits. The PERS retirement allowance is payable monthly for life. It may be selected from 13 retirement benefit options. These options include survivorship benefits and lump-sum payouts. The basic benefit is based on years of service and final average salary. A percentage (2.0 percent for police and fire employees, 1.67 percent for general service employees) is multiplied by the number of years of service and the final average salary. Benefits may also be calculated under either a formula plus annuity (for members who were contributing before August 21, 1981) or a money match computation if a greater benefit results. A member is considered vested and will be eligible at minimum retirement age for a service retirement allowance if he or she has had a contribution in each of five calendar years or has reached at least 50 years of age before ceasing employment with a participating employer (age 45 for police and fire members). General service employees may retire after reaching age 55. Police and fire members are eligible after reaching age 50. Tier One general service employee benefits are reduced if retirement occurs prior to age 58 with fewer than 30 years of service. Police and 36 University of Oregon
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