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You received this email as a PERS employer reporting or financial contact. Please contact your PERS account representative if assistance is needed. Review your GovDelivery subscriptions here.
Senate Bill 1049: Work After Retirement reporting clarification
Effective January 1, 2020, the Work After Retirement section of Senate Bill 1049 allows most retirees to work unlimited hours for a PERS-participating employer, in calendar years 2020-2024, while continuing to receive their retirement benefits (without accruing any new benefits). The bill also requires employers to pay employer contributions on PERS retirees’ salary as if they were an active member, but not any IAP (6%) contributions.
PERS is aware there has been some confusion about the hiring of retirees and how employer contribution rates apply to PERS retirees working after retirement.
Please remember you can always contact your PERS account representative and review PERS' employer website about SB1049 implementation for the latest information, including details on our long-term plans to invoice employers in the future.
Hiring Retirees
When hiring a PERS retiree post-retirement, during calendar years 2020-2024, the PERS retiree will maintain the pension plan membership (Tier One, Tier Two, or OPSRP) they had at retirement. However, their job classification (General Service or Police & Fire) would be based on the job you hire them to do as a PERS retiree.
Example: A retired Tier One member who previously worked as a police officer (and retired under P&F job classification) is hired as a PERS retiree by a city agency as an administrative assistant. The retiree will retain their status as a Tier One member, but their new job classification would now be General Service. The employer contribution rate on the retiree's wages would be based on the Tier One/Tier Two rate for a General Service position.
Clarifications about Employer Contributions
Wages for PERS retirees working after retirement are subject to the same employer contribution rates as if they were active employees. This includes:
- Tier One/Tier Two, OPSRP, and retiree healthcare Normal Cost rates
- Tier One/Tier Two, OPSRP, and retiree healthcare UAL rates
- Pre-SLGRP pooled liability rate
- Transition liability/surplus rate
- Side account rate relief
To verify your 2019-2021 contribution rates, view the Employer Contribution Rates webpage. However, please remember that employers will not make IAP (6%) payments for PERS retirees.
If you have any questions about your rates, please contact actuarial.services@pers.state.or.us.
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