Oregon PERS explained: a complete guide for members near retirement

How the Oregon Public Employees Retirement System works, from which plan you're in to how your pension is figured and how to apply.

Rules checked October 17, 2026, against oregon.gov/pers

Which plan you're in

PERS covers most Oregon state employees, teachers and school staff, and many city, county and special district workers. Your plan depends on when you first started a PERS job:

OPSRP stands for Oregon Public Service Retirement Plan. Police and firefighters in each plan have their own, earlier retirement ages and a higher formula. Compare the three plans side by side.

How your pension is figured

For most members, the pension is:

formula rate × years of service × final average salary

• Formula rate: 1.67% a year for Tier One and Tier Two general service, 2.0% for police and fire. OPSRP is 1.5% for general service and 1.8% for police and fire.
• Final average salary: your three best years of pay. For OPSRP, it's your best three years in a row. Since 2020, pay above a yearly limit doesn't count; PERS lists it as $245,724 (PERS: salary limit).

Example: an OPSRP general service member with 25 years and a $70,000 final average salary gets 1.5% × 25 × $70,000 = $26,250 a year, about $2,188 a month, at full retirement age.

Money Match, for Tier One and Tier Two

Tier One and Tier Two members also have a member account built from contributions made before 2004. Money Match doubles that balance and turns it into a monthly payment. PERS figures your pension both ways and pays whichever is higher (PERS: Tier One/Tier Two benefit calculation).

Estimate my PERS pension

The IAP savings account

Since 2004, every member's 6% of salary goes into an Individual Account Program (IAP) account instead of the pension. Many employers pay the 6% for their workers. The account rises and falls with PERS's investments.

Since July 1, 2020, if you earn more than a monthly threshold ($3,890 in 2026), part of that 6% goes into an Employee Pension Stability Account that helps pay for your pension: 2.5% of pay for Tier One and Tier Two, and 0.75% for OPSRP (PERS: member redirect).

When you retire, you can take your IAP as a lump sum, in installments over 5, 10, 15 or 20 years, or over your expected lifetime (PERS: What is the IAP?).

When you can retire

General service members in every plan can retire as early as 55. Retiring before your full-pension age lowers the pension for life. One year early keeps about 91.8% of it, and three years early about 77.5% (PERS factors, January 1, 2026). See every group's ages, including police and fire.

Yearly cost-of-living raises

PERS raises retirees' pensions each year to keep up with prices, by no more than 2%. The raise depends on when you earned your service:

• Service before October 1, 2013: up to 2% a year.
• Service after that: 1.25% on the first $60,000 of yearly pension, and 0.15% on any amount above $60,000.

The raise starts July 1 and shows up in the August 1 payment (PERS: cost-of-living adjustment).

Protecting your spouse

When you apply, you choose how your pension is paid. A pension for your life only pays the most each month but stops when you die. Options that keep paying a spouse or other beneficiary after you die pay less each month. The choice usually can't be changed later, so compare the options with your spouse before you sign. Our planner shows what your spouse would have in each case.

Health insurance and Social Security

• Health insurance: PERS retirees can buy coverage through the PERS Health Insurance Program, including plans for people not yet on Medicare (PERS: PHIP). Compare your choices before 65.
• Social Security: most PERS jobs also pay Social Security tax, so most members get both. Your PERS pension no longer lowers your Social Security. Read why.

How to apply

1. Get a pension estimate through Online Member Services on oregon.gov/pers, or ask PERS for one in writing.
2. Go to a PERS retirement education session and read the preretirement guide.
3. Turn in your retirement application within the 90 days before your retirement date.
4. Tell your employer you're retiring, so it can let PERS know.

PERS says only the application and telling your employer are required (Tier One and Tier Two steps, OPSRP steps). You can call PERS at 888-320-7377.

General information, not advice. We aren't part of Oregon PERS. Ask PERS for an official estimate before you choose a date.