Retiring with Oregon PERS: What You Need to Know

Retirement planning can feel complicated, especially if you’re part of the Oregon Public Employees Retirement System (PERS). Between the different benefit programs, payout options, and timing decisions, it’s easy to feel uncertain about what’s best for you. 

The good news? Once you understand the key pieces, PERS can be a powerful foundation for your retirement. 

Understanding Your PERS Program 

The first step is knowing which PERS program you’re in. Oregon’s system has evolved over time, and your benefit depends on when you first joined: 

• Tier One (before 1996): The most generous benefits, based on final average salary and years of service. 

• Tier Two (1996–2003): Similar to Tier One but with different return assumptions and limits. 

• OPSRP (after 2003): Combines a pension with an Individual Account Program (IAP), similar to a 401(k). 

Each program has different formulas for calculating your benefit — so understanding your tier is key to accurate planning. 

Pension or Lump Sum? 

When it’s time to retire, you’ll have decisions to make about how to receive your benefits. Many retirees choose a monthly lifetime pension, which provides consistent income for life. Others consider a lump-sum distribution or a mix of both. 

The right choice depends on your broader financial picture, including your spouse’s benefits, other savings, and how much flexibility you want in managing your income. 

Don’t Forget the IAP  

Your Individual Account Program (IAP) is separate from your pension and can be invested based on your age and risk tolerance. As you near retirement, reviewing your IAP allocation can help protect what you’ve built and align it with your retirement timeline. Typically, you have the option to change your target-date fund each year during the month of September.  

Timing Matters 

Your retirement date affects how your benefit is calculated and when your income begins. Working even a few months longer can sometimes increase your payout. Coordinating your PERS benefits with Social Security, other savings, and tax strategy can create a more efficient retirement plan overall. 

Less Paperwork. More Clarity. 

Navigating PERS can feel like a maze of forms and fine print. We can help you cut through the confusion, estimate your benefits, and coordinate your retirement income so everything works together. If you’re within five to ten years of retiring, now is a critical time to review your options. Schedule a PERS planning session with our team to gain clarity and confidence in your next chapter. 

For more information, check out our Oregon PERS resource page.