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<p class="MsoNormal"><span style="font-size:12.0pt;color:#993366">The OSPS Help Desk is receiving many questions about Voluntary Contributions (VC), specifically relating to the VC deduction being post tax. Please see the email below that was sent statewide
to all executive branch employees that clarifies this. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#993366"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#993366">I have also attached the recent email that was sent to agency payroll about processing corrections to the VC deduction, please review it.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#993366">Payroll <u>cannot</u> delete or change this deduction without a request from DAS CPERS. If the employee would like to cancel their VC enrollment, they must do so through their PERS OMS account
and the deduction cannot be cancelled retroactively. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#993366"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#993366">If you have questions or concerns about this process, please contact me.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#993366"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><b><span style="font-size:12.0pt;color:#993366">Shauna Tobiasson | Senior CPERS Analyst | DAS-EGS-CPERS<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#993366"><a href="mailto:Shauna.m.tobiasson@oregon.gov">Shauna.m.tobiasson@oregon.gov</a> | Cell: 971-719-3173
<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:9.0pt;color:#993366">Website:
<a href="http://www.oregon.gov/DAS/Financial/payroll/Pages/index.aspx"><span style="color:#993366">http://www.oregon.gov/DAS/Financial/payroll/Pages/index.aspx</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:#7030A0;background:white">“</span><span style="font-size:10.0pt;color:#7030A0">With the new day comes new strength and new thoughts.” -Eleanor Roosevelt</span><span style="font-size:10.0pt;color:#1F497D"><o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-size:12.0pt;color:#993366"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> all_state_employees-bounces@list.oregonsdc.org <all_state_employees-bounces@list.oregonsdc.org>
<b>On Behalf Of </b>Statewide Announcements * DAS<br>
<b>Sent:</b> Wednesday, July 22, 2020 10:21 AM<br>
<b>To:</b> all_state_employees@state.or.us<br>
<b>Subject:</b> SB1049 and Retirement Contribution Options<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p style="margin:0in;margin-bottom:.0001pt"><i><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">A message from the Department of Administrative Services, Centralized PERS Services Team<span style="color:#1F497D"><o:p></o:p></span></span></i></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Dear State Employees,
<o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">PERS has shared a great deal of information about the changes the Oregon Legislature put in place with the passage of
</span><a href="https://www.oregon.gov/pers/MEM/Pages/SB1049.aspx"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Senate Bill 1049</span></a><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">. The Department of Administrative
Services, Centralized PERS Services Team (CPERS) works with PERS to implement these types of changes. The purpose of this message is to clarify how SB 1049 impacts state of Oregon employees, and to provide options for employees who want to maintain the contribution
to their Individual Account Program (IAP) at 6% of earnings. <o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><i><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> </span></i><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Overview of SB 1049 ‘Member Redirect’
</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">SB 1049 directs that beginning July 1, 2020, employees who make more than $2,500 a month will have a portion of their 6% IAP contribution redirected
to a separate account called the "Employee Pension Stability Account"<span style="color:#1F497D">
</span>(EPSA). The amount redirected is different depending on member type – Tier One and Two, and OPSRP. The EPSA account will be used to help fund future monthly pension benefits for state employees. (Reminder: There are two parts to your future PERS retirement:
(1) your lifetime, monthly pension benefit; and (2) your Individual Account Program.)<o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The following chart shows the percentages going to the EPSA and your IAP, beginning July 1, 2020.<span style="color:#1F497D"><o:p></o:p></span></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse">
<tbody>
<tr>
<td width="147" valign="top" style="width:109.3pt;border:solid #A3A3A3 1.0pt;background:#D0CECE;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Member Type</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
</td>
<td width="122" valign="top" style="width:91.95pt;border:solid #A3A3A3 1.0pt;border-left:none;background:#D0CECE;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Redirect to EPSA</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
</td>
<td width="136" valign="top" style="width:102.25pt;border:solid #A3A3A3 1.0pt;border-left:none;background:#D0CECE;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Contribution to IAP</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
</td>
<td width="161" valign="top" style="width:121.9pt;border:solid #A3A3A3 1.0pt;border-left:none;background:#D0CECE;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Total Withheld from Pay</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
</td>
</tr>
<tr>
<td width="147" valign="top" style="width:110.75pt;border:solid #A3A3A3 1.0pt;border-top:none;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Tier One and Two
</span><span style="font-size:11.0pt;font-family:Wingdings">à</span><span style="font-size:11.0pt"><o:p></o:p></span></p>
</td>
<td width="122" valign="top" style="width:90.5pt;border-top:none;border-left:none;border-bottom:solid #A3A3A3 1.0pt;border-right:solid #A3A3A3 1.0pt;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">2.5%
<o:p></o:p></span></p>
</td>
<td width="136" valign="top" style="width:100.85pt;border-top:none;border-left:none;border-bottom:solid #A3A3A3 1.0pt;border-right:solid #A3A3A3 1.0pt;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">3.5%<o:p></o:p></span></p>
</td>
<td width="161" valign="top" style="width:105.0pt;border-top:none;border-left:none;border-bottom:solid #A3A3A3 1.0pt;border-right:solid #A3A3A3 1.0pt;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">6%<o:p></o:p></span></p>
</td>
</tr>
<tr>
<td width="147" valign="top" style="width:110.25pt;border:solid #A3A3A3 1.0pt;border-top:none;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">OSPRP
</span><span style="font-size:9.0pt;font-family:"Calibri",sans-serif"> </span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> </span><span style="font-size:11.0pt;font-family:Wingdings">à</span><o:p></o:p></p>
</td>
<td width="122" valign="top" style="width:90.5pt;border-top:none;border-left:none;border-bottom:solid #A3A3A3 1.0pt;border-right:solid #A3A3A3 1.0pt;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">.75%<o:p></o:p></span></p>
</td>
<td width="136" valign="top" style="width:100.85pt;border-top:none;border-left:none;border-bottom:solid #A3A3A3 1.0pt;border-right:solid #A3A3A3 1.0pt;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">5.25%<o:p></o:p></span></p>
</td>
<td width="161" valign="top" style="width:105.4pt;border-top:none;border-left:none;border-bottom:solid #A3A3A3 1.0pt;border-right:solid #A3A3A3 1.0pt;padding:4.0pt 4.0pt 4.0pt 4.0pt">
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">6%<o:p></o:p></span></p>
</td>
</tr>
</tbody>
</table>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Overview of SB 1049 ‘Voluntary Contribution’</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">SB 1049 gives employees who are affected by the redirect the option of making an
<b>AFTER<span style="color:#1F497D">-</span>TAX</b> voluntary contribution to their IAP account in the same amount going to the EPSA. This voluntary contribution is an optional choice.
<o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Example: A Tier One or Two employee has the mandatory 6% pre-tax deduction taken from their pay, with
<u>2.5%</u> of it now going to the EPSA. This employee can choose to have <u>2.5%</u> deducted from their pay
<b>AFTER TAX</b> and sent to their IAP. <o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">Alternative Options</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black">The Oregon Savings Growth Plan (OSGP) is a good alternative employees can use to make additional contributions to their retirement, for these
reasons: <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:27.0pt;text-indent:-.25in;mso-list:l0 level1 lfo2;vertical-align:middle">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol;color:black"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:black">Contributions to the Deferred Compensation Plan in OSGP are made
<b>PRE</b></span><b><span style="color:#1F497D"> </span><span style="color:black">TAX</span></b><span style="color:black">.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:27.0pt;text-indent:-.25in;mso-list:l0 level1 lfo2;vertical-align:middle">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol;color:black"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:black">Contributions to a ROTH IRA in OSGP are made
<b>AFTER TAX</b> and are an alternative.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:27.0pt;text-indent:-.25in;mso-list:l0 level1 lfo2;vertical-align:middle">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol;color:black"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:black">Employees can contribute an amount not limited to the amount of the EPSA contribution. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:27.0pt;text-indent:-.25in;mso-list:l0 level1 lfo2;vertical-align:middle">
<![if !supportLists]><span style="font-size:10.0pt;font-family:Symbol;color:black"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:black">Employees can enroll in the Oregon Savings Growth Plan at any time, whether or not they are affected by SB 1049.<o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">In sending this message, DAS wants to be sure employees are well informed so they can make the best decision possible for their retirement planning.
Please consult with a tax professional if you have tax-related questions. <span style="color:#1F497D">
</span><o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> <o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Resources</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">For more information about the Oregon Savings Growth Plan, including how to enroll, please visit:
</span><a href="https://www.oregon.gov/pers/osgp/pages/index.aspx"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">https://www.oregon.gov/pers/osgp/pages/index.aspx</span></a><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">.
<o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt"> <o:p></o:p></span></p>
<p style="margin:0in;margin-bottom:.0001pt"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">For more information about SB 1049, please visit the PERS website:<span style="color:#1F497D">
</span></span><a href="https://www.oregon.gov/pers/MEM/Pages/SB1049.aspx"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">https://www.oregon.gov/pers/MEM/Pages/SB1049.aspx</span></a><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">.
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