Contributions into the Individual Account Program (IAP) are placed in your employee account. PERS credits that account with earnings plus administrative fees and losses.
ORS 238A.330 requires you to contribute 6 percent of your salary toward your account. You make contributions to your account in one of three ways depending on the arrangement between you and your employer:
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1. |
contributions deducted from your paychecks before withholding of federal and state income taxes and sent to PERS by employers, |
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2. |
contributions deducted from your paychecks after withholding of federal and state income taxes and sent to PERS by employers, or |
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3. |
contributions your employer pays on your behalf before withholding of federal and state income taxes. |
Whether you or your employer pays the contributions, member contributions belong to you. PERS holds them in trust during your membership. Your contributions plus earnings less losses and administrative fees make up your IAP employee account.