May 5, 2020
How would you like some good news? I thought so!
First, at present, the coronavirus situation has had no impact on PERS/OPSRP retiree pensions. Could this change? Possibly, but only after a Legislative session. Working from the classroom or working from off-site, you are still working toward your PERS/OPSRP retirement benefit.
But wait! There's more good news! If you have not received your 2019 PERS/OPSRP statement, allow me to offer a spoiler: it was a pretty good year for earnings. PERS Tier 1 regular accounts were again credited with 7.2%, with the Tier 1 variable accounts being credited 28.8%. PERS Tier 2 was credited with 13.27%. The IAP accounts (both PERS and OPSRP) had a variety of credits, depending on which fund the member was in (largely determined by age), but the average was 12.53%.
Of course, 2020 is a giant question mark right now. However, there is even good news here!: because PERS crediting does not happen until Spring of the following year (and therefore allowing for the potential of a market recovery to help the averages), Oregon State Treasurer, Tobias Read, has said "For current state employees, changes happening in the stock market right now and over the next nine months won't affect your IAP account until the spring of 2021."
If this is all very confusing I completely understand. Typically this time of year I conduct a workshop at the PAT office where I would try to explain this and answer questions such as: Should I still contribute to my 403b? What is a 403b? Can I retire now? Should I? etc.
For obvious reasons, conducting a seminar simply isn't an option at present. However, I am still more than happy to help and answer any retirement/investment questions you might have. Please feel free to contact me at [email protected], or through PAT.
Foster & Associates, Inc.