Creditable service is one of the factors used to determine a member’s retirement eligibility and pension
The term used to describe the part of a retirement allowance funded by employer contributions that is usually paid as a series of monthly payments to a retiree for life. amount at retirement. Service credit is earned per calendar month and calendar year.
To earn service credit for a calendar month, you must be:
A PERS member who is currently employed (also known as an “active member A PERS member who is currently working for a PERS-participating employer and who has completed a six-month waiting period.”) in a qualifying position A direct position with a PERS-participating employer that requires 600 or more hours of work per year. A nonqualifying position or positions may become qualifying by requiring 600 hours of work or more per calendar year for one or more PERS-participating employers. A nonqualifying job that becomes qualifying is changed to active service status. for more than half the days in a calendar month.
AND
Paid by your PERS-participating employer in that month. For a month with 30 or 31 days, you must be employed for 16 days or more. For a month with 28 or 29 days, you must be employed for 15 days or more.
The following activities count as work:
A partial day of work.
Paid leave, such as sick leave, vacation, bereavement leave, and holidays.
Leave covered by a Paid Leave Oregon program that is paid by your employer.
The following do not count as work:
Leave paid by a third party, such as short-term disability.
Leave covered by a Paid Leave Oregon program that is paid by a third-party insurance company.
Unpaid work, such as volunteer work.
The following disqualify a calendar month from earning service credit:
If you are a working retiree A retired member who returns to work for a PERS-participating employer and maintains their retired status by following certain rules. Refer to the “Working after Retirement” chapter under Contents and W in this guide, or read https://www.oregon.gov/pers/ret/Pages/Work-After-Retirement-for-Tier-One-Tier-Two-Members.aspx. (retirees do not earn benefits).
Note: An employee in a qualifying position (or positions) who works fewer than 600 hours in a calendar year and subsequently has their position changed to nonqualifying service When an employee in a qualifying position works fewer than 600 hours in a calendar year, their position type is changed to “nonqualifying service.” Their original hire intent remains qualifying, but the change in position type means they will not earn PERS benefits for that calendar year and beyond until they reach 600 or more hours in a calendar year. At that point, their position type is changed back. also will not earn service credit for any months that year, even if they work more than half a calendar month.
If you take unpaid leave for half or more of the calendar days in the month. (Leave paid by a third party counts as unpaid leave.)
If you are employed for half or less of a calendar month because of hiring or terminating partway through the month.
School employee service credit
Special rules apply to school employees to account for their summer breaks. School employees receive service credit for their summer breaks if they work or receive paid time off for more than half the calendar days in each month between these periods:
January 7 through May 26 — They earn credit for June.
September 15 (September 26 for higher education) through December 16 — They earn credit for July through December.