Resolution No. 5146 - Laserfiche WebLink

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements (5) Other Information, continued (C) Retirement Plan – Oregon PERS (OPERS), continued Changes in Plan Provisions Subsequent to Measurement Date, continued OPERS members who have accrued benefits before and after the effective dates of the 2013 legislation will have a blended COLA rate when they retire. This is a change in benefit terms subsequent to the measurement date of June 30, 2014, and will not be included in the net pension asset (liability) proportionate shares provided to employers in June 2015. (D) Retirement Plan – OPSRP IAP Plan Description OPSRP Individual Account Program (IAP) is a defined contribution pension plan for Tier One/Tier Two and OPSRP plan members. All benefits of the system are established by the legislature pursuant to ORS Chapters 238 and 238A. Plan Benefits An IAP member becomes vested on the date the employee account is established or on the date the rollover account was established. If the employer makes optional employer contributions for a member, the member becomes vested on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar years, the date the member reaches normal retirement age, the date the IAP is terminated, the date the active member becomes disabled, or the date the active member dies. Upon retirement, a member of the OPSRP Individual Account Program may receive the amounts in his or her employee account, rollover account, and vested employer account as a lump-sum payment or in equal installments over a 5, 10, 15, or 20-year period or an anticipated life span option. Each distribution option has a $200 minimum distribution limit. Death Benefits Upon the death of a non-retired member, the beneficiary receives in a lump sum the member’s account balance, rollover account balance, and vested employer optional contribution account balance. If a retired member dies before the installment payments are completed, the beneficiary may receive the remaining installment payments or choose a lump-sum payment. Recordkeeping PERS contracts with VOYA Financial to maintain IAP participant records. Contributions State statute requires that covered employees contribute 6.0% of their annual covered salary to the IAP plan effective January 1, 2004. Statute allows that the employer may elect to pay the employees’ required IAP contributions. The City has elected to pay all of the employees’ required IAP contributions, except for employees who are members of the City’s International Association of Fire Fighters (IAFF) union. Beginning July 1, 2012, IAFF covered employees elected to pay the employees’ required IAP contribution. For the fiscal year ended June 30, 2015, the City’s contributions and IAFF covered employees’ contributions to the IAP were $4,728,953 and $1,022,216, respectively (a total of 6.01% of covered payroll). continued 75