The Oregon Profit Sharing Plan is a retirement savings plan designed to provide employees with an opportunity to share in the profits of their employer. It is a popular retirement benefit offered by many employers in Oregon and is geared towards helping employees save for their future. In an Oregon Profit Sharing Plan, eligible employees have the opportunity to receive a portion of their employer's profits, which is then deposited into individual retirement accounts (IRAs) or 401(k) plans. The contributions made by employers are typically discretionary and can vary from year to year, depending on the company's profitability. However, some employers may choose to contribute a fixed percentage or amount each year. The Oregon Profit Sharing Plan offers employees the advantage of tax-deferred growth on their contributions and potential tax savings on their withdrawals during retirement. Participants have the flexibility to choose their own investment options based on their risk tolerance and retirement goals. Common investment options may include mutual funds, stocks, bonds, or target-date funds. There are different types of Oregon Profit Sharing Plan structures available to employers, each with its own features and advantages. These may include: 1. Traditional Profit Sharing Plan: This is the most common type, where employers make discretionary contributions on behalf of employees. Contributions are generally based on company profitability and may vary from year to year. 2. Safe Harbor Profit Sharing Plan: This plan provides a way for employers to fulfill certain non-discrimination testing requirements and allows them to make contributions to employees' accounts that are fully vested immediately. This structure provides benefits to both employers and employees by avoiding potential compliance issues. 3. Integrated Profit Sharing Plan: This plan integrates profit sharing contributions with Social Security benefits. Employers may adjust their contributions based on the Social Security taxable wage base, which can result in higher allocations for higher-paid employees in relation to lower-paid employees. 4. New Comparability Profit Sharing Plan: This type of plan allows employers to allocate contributions based on predetermined classifications or groups of employees. It offers flexibility in designing contribution formulas and can benefit certain employees or groups disproportionately. In conclusion, the Oregon Profit Sharing Plan is a retirement savings vehicle that provides employees with the opportunity to share in their employer's profits. It offers tax advantages, investment flexibility, and various plan structures to suit the needs of both employers and employees. By participating in an Oregon Profit Sharing Plan, employees can contribute towards building a secure financial future during their retirement years.
Oregon Profit Sharing Plan
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When you retire, PERS will calculate your monthly benefit using the following formula: General service: 1.5 percent x years of retirement credit x final average salary. Normal retirement age for general service members is age 65, or age 58 with 30 years of retirement credit.
If you are no longer employed by a PERS-participating employer, you may choose to ?withdraw? the member contributions and earnings that have accumulated in your Individual Account Program (IAP), as long as certain conditions have been met.
You are vested in your Tier One or Tier Two account on the earliest date in which you complete at least 600 hours of service in each of five calendar years (the years do not have to be consecutive, but you cannot have a gap of more than five years).
The contract includes a $1,500 COLA bonus scheduled for September 2023, and a substantial 6.55% COLA scheduled for December 2023. Additionally, a 6.5% COLA has been secured for early 2025, ensuring that state workers will continue to see improvements in their compensation well into the future.
For career employees, defined as those with 30-plus years of service, the median monthly benefit is $5,026, or $60,312 a year. The median monthly benefit for those retiring in calendar year 2022 was $1,921 a month, or $23,052 annually.
Statute requires that members who withdraw from any PERS plan withdraw from all PERS plans in which they participate. If you are vested and you do not withdraw your member account(s), you will be eligible for lifetime monthly benefit payments at retirement.
Retirement with unreduced benefits ("normal retirement age") ClassificationAgePERS service timeGeneral Service65Age 58 with 30 years of servicePolice and Fire*60Age 53 with 25 years of service
Your OPSRP pension is primarily funded by your employer and can provide a lifetime income. To vest in your pension, you must do one of two things: Work for five years in a PERS-qualifying position for at least 600 hours per year.