Saving for retirement is a complex process, but the state of Oregon is trying to make it a little easier. The Oregon Public Employee Retirement Systems (OPERS) is a pension plan that can help Oregon residents prepare for retirement. Learn more about this program, and schedule a consultation with a Firenze Wealth financial advisor for assistance with building a comprehensive financial plan.Contact Us
If you were hired after August 29th, 2003, you’re an Oregon Public Service Retirement Plan (OPSRP) member. Being a member is automatic. As a member, there are two parts of the OPERS program that you are eligible for—the pension program and the IAP. The only exception to eligibility is judges, who are ineligible.
The OPSRP Pension Program is a lifetime pension funded by your employer. Its goal is to provide you with about 45% of the average amount of your salary upon retirement. In order to see how much you can expect to receive, you can use the OPSRP calculation formula. Most people will fall within the general service calculation, except for police and firefighters.
- The general service formula is 1.5 percent multiplied by your number of years of retirement credit multiplied by your final average salary. Your final average salary is calculated by taking the average of your annual salary for the last three years before you retire. For general service members the normal age of retirement is 65 (or 58 with 30 years of retirement credit).
- For police and firefighters, the calculation is slightly different. It’s 1.8 percent multiplied by years of retirement credit multiplied by your final average salary. For police and firefighters, the normal retirement age is 60 (or 53 with 25 years of retirement credit).
Individual Account Program (IAP)
If you’re an OPSRP member you automatically qualify for an IAP account. As of 2018, IAP accounts are invested in IAP target date funds. The goal of these target date funds is to help reduce risk and volatility as you approach retirement. You may contribute up to six percent of your salary to your IAP account (paid either by you or your employer). Once you retire you can access your IAP dollars either in a lump-sum payment or in periodic distributions spaced out over 5, 10, 15, or 20 years (or over your expected lifetime).
Speak With An Advisor
The OPERS program may be a great tool to help you prepare for retirement. Speak with your financial adviser to see how OPERS can fit into your financial plan.Contact Us
The Oregon Public Employee Retirement Systems (OPERS) is not affiliated with Firenze Wealth Management or LPL Financial.