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CITY OF EUGENE, OREGON <br /> <br />Notes to Basic Financial Statements <br /> <br />continued <br />(5) Other Information, continued <br /> <br />(D) Retirement Plan – OPSRP IAP <br /> <br /> Plan Description <br /> <br />OPSRP Individual Account Program (IAP) is a defined contribution pension plan for Tier One/Tier Two and OPSRP <br />plan members. All benefits of the system are established by the legislature pursuant to ORS Chapters 238 and 238A. <br /> <br />Plan Benefits <br /> <br />An IAP member becomes vested on the date the employee account is established or on the date the rollover account <br />was established. If the employer makes optional employer contributions for a member, the member becomes vested <br />on the earliest of the following dates: the date the member completes 600 hours of service in each of five calendar <br />years, the date the member reaches normal retirement age, the date the IAP is terminated, the date the active <br />member becomes disabled, or the date the active member dies. <br /> <br />Upon retirement, a member of the OPSRP IAP may receive the amounts in his or her employee account, rollover <br />account, and vested employer account as a lump-sum payment or in equal installments over a 5, 10, 15, or 20-year <br />period or an anticipated life span option. Each distribution option has a $200 minimum distribution limit. <br /> <br />Death Benefits <br /> <br />Upon the death of a non-retired member, the beneficiary receives in a lump sum the member’s account balance, <br />rollover account balance, and vested employer optional contribution account balance. If a retired member dies before <br />the installment payments are completed, the beneficiary may receive the remaining installment payments or choose a <br />lump-sum payment. <br /> <br />Recordkeeping <br /> <br />PERS contracts with VOYA Financial to maintain IAP participant records. <br /> <br />Contributions <br /> <br />State statute requires that covered employees contribute 6.0% of their annual covered salary to the IAP plan effective <br />January 1, 2004. Statute allows that the employer may elect to pay the employees’ required IAP contributions. <br /> <br />The City has elected to pay all of the employees’ required IAP contributions, except for employees who are members <br />of the City’s International Association of Fire Fighters (IAFF) union. Beginning July 1, 2012, IAFF covered employees <br />elected to pay the employees’ required IAP contribution. <br /> <br />For the fiscal year ended June 30, 2018, the City’s contributions and IAFF covered employees’ contributions to the <br />IAP were $5,195,883 and $1,235,643, respectively (a total of 6.0% of covered payroll). <br /> <br />(E) Other Post-Employment Benefits (OPEB) – Retirement Health Insurance Account (RHIA) <br /> <br />Plan Description <br /> <br />Employees of the City are provided with health insurance premium subsidies through the Retirement Health <br />Insurance Account (RHIA). The Oregon Public Employees Retirement System (OPERS) administers the RHIA plan, <br />a cost-sharing, multiple-employer defined benefit Other Post Employment Benefit (OPEB) plan. The Oregon <br />Legislature has delegated authority to the Public Employees Retirement Board to administer and manage the system. <br />All benefits of the System are established by the legislature pursuant to ORS Chapters 238 and 238A. OPERS issues <br />a publicly available Comprehensive Annual Financial Report and Actuarial Valuation that can be obtained at: <br />http://www.oregon.gov/pers/Pages/section/financial_reports/financials.aspx <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />76 <br />December 10, 2018, Meeting - Item 2D