So my wife works for the local university and has a choice from the following. I am very confused so please advise:
Choice between two employer-paid pension programs after six months
Option #1: PERS/OPSRP pension program is administered by the Oregon Public Employees Retirement System (PERS). PERS manages the OPSRP pension, PERS pension, and the Individual Account Program (IAP) for eligible public employees. Investment of the program funds are managed under the direction of the Oregon Investment Council for the Oregon State Treasury. The program has two components:
OPSRP and PERS component of the pension program is a defined benefit plan and is funded by OSU and provides a lifetime pension benefit;
PLUS
IAP component of the pension program is a defined contribution plan and is funded by a 6% member contribution, which OSU currently pays for you. The 6% contribution is made on wages/salary subject to Oregon taxes; and the amount of compensation used for this contribution calculation is limited as outlined in the ORP Plan Highlights. This limit is periodically adjusted for cost-of-living increases. Your account is credited with earnings/losses annually based on investment returns. At retirement, the funds can be withdrawn as a lump-sum payment or in installments. It is not a lifetime benefit.
*Employees that are not subject to Oregon taxes (includes those not living or working in Oregon and Foreign Nationals), will only earn retirement credit (years of service) under the OPSRP pension program. At retirement the OPSRP pension calculation for Average Ending Salary will only include salary subject to Oregon taxes.
Option #2: Optional Retirement Program (ORP) is administered by Oregon Public University Retirement Program (OPURP) through Fidelity Investments or TIAA. This program is a defined contribution plan and is participant-directed (you select the investments). Your account is credited with earnings/losses based on your investment returns. At retirement, you will work directly with TIAA or Fidelity to withdraw, roll, or take distributions from your account. Does not provide a guaranteed lifetime benefit. ORP Tier 4 benefits (employees hired on or after July 1, 2014) are:
Employer contribution of 8%
PLUS
Up to a 4% employer match if you participate in the voluntary retirement savings Tax Deferred Investment (TDI) 403(b) program through TIAA or Fidelity
Submitted March 27, 2020 at 11:10PM by turduckin4lyfe https://ift.tt/39vpoFP
