PERS delayed 2004 Tier One and Tier Two Annual Statements due to two Oregon Supreme Court cases, Strunk and Eugene. Those cases have been resolved and the PERS 2004 Annual Statements should arrive at members’ home addresses before January 31, 2006.
Contributions
No contributions were added to your Tier One or Tier Two regular or variable accounts in 2004; beginning in January 2004, all member contributions have been placed in your Individual Account Program (IAP) account.
Earnings
For Tier One members, your regular account has been adjusted based on the following:
§ 1999 earnings on regular accounts were recalculated at 11.33 percent (instead of 20 percent) as a result of the Eugene case;
§ The recalculated amount for 1999 has been carried forward for 2000, 2001, and 2002 with 8 percent earnings per year and contributions for each year added to your regular account;
§ Earnings crediting for 2003 (with contributions for that year) and 2004 (with no contributions for that year) at 8 percent per year have been added as a result of the Strunk decision.
Your Tier One total account balance reflects the results of those adjustments.
A generic example showing the adjustments to a Tier One member regular account is presented below and uses the following:
Pre-Strunk/Eugene |
Post-Strunk/Eugene |
|||||||
Year |
Salary (2%/Year Increase) ($) |
6% Member Contribution ($) |
Pre-Earnings Crediting Balance ($) |
Earnings Crediting Rate (%) |
Ending Account Balance ($) |
Pre-Earnings Crediting Balance ($) |
Earnings Crediting Rate (%) |
Ending Account Balance ($) |
1998 |
|
|
|
|
75,000 |
|
|
75,000 |
1999 |
50,000 |
3,000 |
78,000 |
20.00 |
93,600 |
78,000 |
11.33 |
86,837 |
2000 |
51,000 |
3,060 |
96,660 |
8.00 |
104,393 |
89,897 |
8.00 |
97,089 |
2001 |
52,020 |
3,121 |
107,514 |
8.00 |
116,115 |
100,210 |
8.00 |
108,227 |
2002 |
53,060 |
3,184 |
119,299 |
8.00 |
128,843 |
111,411 |
8.00 |
120,324 |
2003 |
54,122 |
3,247 |
132,090 |
0.00 |
132,090 |
123,571 |
8.00 |
133,457 |
2004 |
55,204 |
0 |
132,090 |
8.00 |
142,657 |
133,457 |
8.00 |
144,133 |
Tier Two Members
Tier Two member regular account balances were not affected by the Strunk or Eugene cases. Earnings crediting for 2004 is 13.27 percent.
Variable Account Participants
If you participate in the variable account, your variable account earnings are not affected by Strunk/Eugene. The variable portion of your Tier One or Tier Two account will be credited with 13.00 percent for 2004.
To see a sample Annual Statement, and learn more about what information the statement contains, visit the PERS website at http://www.oregon.gov/PERS/.
2005 Tier One/Tier Two Annual Statements