You may choose to have the lump-sum portion of your payment paid in up to five annual installments. If you elect more than one installment, PERS will make the first installment payment at retirement and pay installments in subsequent years on the first day of the calendar month the initial payment was made.
PERS will credit interest to your remaining account balance as of December 31 each year. Your final installment will include all accumulated interest.
PERS mails statements of your installment account each year by mid-June.
If you die before all installments are paid, the remaining balance in your member account, plus interest to the date of disbursement, is payable to your beneficiary or next of kin as provided in ORS 238.390(5).
For each installment, you may choose to receive the payment or roll the taxable portion over to a traditional IRA, Roth IRA, or other qualified retirement plan. If you choose to receive the payment, federal law requires PERS to withhold 20 percent of the payment for federal income tax.