Police Officer and Firefighter Unit Benefits

Overview

If you are an active member Tier One/Tier Two member: A member who is presently employed by a participating employer in a PERS Chapter 238 Program qualifying position and who has completed the six-month waiting period. OPSRP member: A member who is presently employed by a participating employer in an Oregon Public Employees Retirement Plan (OPSRP) Program qualifying position and who has completed the six-month waiting period. currently employed as a police officer or firefighter, you can purchase up to eight police officer and firefighter (P&F) units to provide additional benefits between your date of retirement The first day of the month following the last day a member (1) worked, was on vacation, or was paid sick leave, or (2) the first of the month a member files his or her application for benefits, whichever is later. and age 65.

There are two ways in which you can purchase P&F units: monthly payroll contributions and lump-sum payment at retirement.

Purchasing unit benefits through monthly payroll contributions

You can purchase P&F units through monthly payroll contributions if you are an active member currently employed in a police officer or firefighter position and you are less than age 65. If you retire before you purchase the maximum of eight units (but you have made previous payroll contributions for units), you can purchase any remaining units by making a lump-sum payment of any remaining amount required for the purchase. The lump-sum purchase must be made within 90 days before your date of retirement and before reaching age 65.

Purchasing unit benefits through a lump-sum payment

If you are an active member less than age 60 currently employed as a police officer or firefighter and no previous payroll contributions for P&F units have been made, you can make a lump-sum payment Payment of benefits in one payment. to purchase up to eight units within 90 days before your date of retirement.

Disability retirement

If you are approved for a Tier One/Tier Two disability, you can purchase the balance of the units or make an initial purchase equal to the maximum eight units.

Applying for your unit benefits

The current cost to purchase the eight units is $4,000. You may apply for P& F unit benefits by completing the Police Officer and Firefighter Unit Payment Application (available by clicking the Form button).

Contact Customer Service to request the amount of payment required, if any, to complete your purchase of additional benefits.

Payment of unit benefits

Each unit purchased provides a $20 monthly benefit paid by PERS for 60 months—$10 from your contributions and $10 from employer contributions. You can purchase up to eight units, which would pay $160 per month for 60 months. Payments from your unit account cannot begin earlier than earliest retirement age (age 50) and must be paid to you by age 65. Any accrued earnings on your P&F unit benefits above the amount you purchased are paid in a lump-sum payment with your first monthly unit benefit payment.

Your Member’s Annual Statement will show your unit account balance.

Unit benefits paid out by age 65

Regardless of the method you choose to purchase unit benefits, your unit benefits must be fully paid out once you reach age 65. Should you work to age 65, the amount in your unit account will be refunded to you in a lump-sum payment.

Canceling unit contributions

If you elected to make contributions to purchase units benefits, you may request to cancel any further contributions at any time. Important: You will not be permitted to participate in the unit benefit program again once you cancel the contributions.

Withdrawal or refund of your unit account

You may request to voluntarily withdraw your unit account if you separate from all PERS-participating employers and their control groups.

If you elected to make monthly contributions toward purchasing unit benefits and you become an inactive member Tier One/Tier Two member: A member who is not employed in a qualifying position, whose membership has not been terminated by account withdrawal or loss of membership, and who is not retired for service or disability. OPSRP member: A member who is not employed in a qualifying position, whose membership has not been terminated by account withdrawal or loss of membership and who is not a retired member. or you transfer to a non-police or non-firefighter position, PERS retains your unit account for a period of five years from the time you become an inactive member or you transfer to a non-P&F position. If after five years you have not turned age 50 or returned to a qualifying police officer or firefighter position, PERS will cancel and refund your unit account.

Voluntary withdrawals and involuntary refunds result in cancellation of your unit account, and you may not participate in the unit benefit program at a later date. If you withdraw your PERS member or IAP account, you will also be required to withdraw your unit account. However, withdrawing your P&F unit account does not require a withdrawal from your member or IAP account.

Loss of units

Should you stop working in a police and firefighter position, you can retain your unit account for five years. If at the end of that time you have not reached age 50 or you have not returned to employment in which you can make unit contributions, your unit account will go into loss of units. A loss of units will cancel the units election, and PERS will refund your account.

Note: You are exempt from the five-year period if you are a police officer or firefighter on PERS disability retirement.

Beneficiaries of police officers or firefighters

If you are the beneficiary One or more persons, trusts, or organizations a member or participant names to receive plan benefits, if any, upon the death of the member or participant. of a member who died before retirement and he or she purchased P&F units, PERS will pay to you in a lump sum the amount in the unit account. There is no matching employer amount.