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.
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.
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).
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.
The Oregon Public Employee Retirement Systems (OPERS) is not affiliated with Firenze Wealth Management or LPL Financial.