Retirement

Retirement Plan Options

Lane Community College employees have several retirement plan options. Oregon Public Employees Retirement System (PERS) pension plan and two voluntary retirement savings plans offer a variety of choices to help achieve a comfortable retirement.

PERS Retirement

Eligible part-time and full-time employees participate in the Oregon Public Employees Retirement System (PERS).

For employees who are not already active PERS members, membership generally begins after six full months of qualifying employment. The waiting period is waived for employees who have active PERS membership when they begin employment with Lane.

The College pays the required 6% employee contribution on the employee's behalf, in addition to required employer contributions. This benefit is administered according to PERS rules and is subject to change.

Employees interested in saving additional money for retirement may also participate in Lane's voluntary supplemental retirement programs.

PERS / OPSRP Information

What is PERS? The components of the PERS and OPSRP retirement plans include a defined benefit pension plus an individual account program (IAP). Pension benefits are based on your date of hire, years of service and earnings, and are generally available when you reach a normal retirement age. Vesting in the pension account occurs after 5 years of contributions or age 65. You can accumulate assets in the IAP that is invested for you by PERS. Vesting in the individual account occurs immediately upon enrollment.

After the initial eligibility is met, you must continue to work 600 or more hours in a calendar year to maintain eligibility.

Employees on an Educational Visa (F-1, J-1, etc.) are not eligible to participate in the retirement program per Oregon Revised Statute 238.015(4) and Oregon Administrative Rule 459.010.0025(1). Full-time students, specialized employment services clients, and/or student workers may also be excluded from eligibility based on employment and student status.

PERS online provides you with information on your retirement plan, access to forms, the ability to view your account(s), run benefit estimates and more.

Disclaimer: This information is being provided as a general resource and is subject to change. All PERS related benefits and calculations are based solely on the rules and regulations set forth by PERS, Oregon Administrative Rules, and Oregon Revised Statutes.

Plan Categories

Tier 1 – hired prior to 01/01/1996
Tier 2 – hired between 01/01/1996 and 08/28/2003
OPSRP – hired on or after 08/29/2003

Preretirement Beneficiary Designation

Every PERS member needs to submit a preretirement beneficiary form. A preretirement beneficiary designation form tells PERS who will inherit your pension and IAP if you pass away before you retire. By not providing this information, it could delay payment of your benefits to your beneficiary.

Tips:

  • A change in marital status invalidates the IAP beneficiary designation. Employees need to submit a new IAP designation form after a divorce, marriage or death of a spouse.
  • Provide as much contact information about your beneficiaries as possible. This helps PERS reach them even if their phone number or email changes.

PERS' Designating a Preretirement Beneficiary webpage has links to the required forms and instructions for Tier 1, Tier 2 and OPSRP members.

Retirement Education

Education is a key component of retirement planning. LCC employees have access to a variety of education resources and workshops.

Voluntary Retirement Plans

PERS Information & Workshops

PERS Newsletters

Retirement Process and Planning

LCC

To properly document your intent to retire, please provide a letter of intent to your supervisor and clearly identify your last day of employment and effective date of retirement. This letter should be signed and dated. In lieu of the letter, you may also submit the Resignation/Retirement Notification form; however, this does not notify your supervisor directly so it’s important that you still provide verbal (or written) notice to them as well.

PERS

To formally retire with PERS, you will need to submit their required form(s) within 90 calendar days prior to your effective date of retirement. On the PERS website they have information and resources, as well as a checklist and links to the required forms.

Purchases

Tier 1 and Tier 2 members who qualify have the option to buy certain types of "service time" (aka retirement credit). The purchase(s) can give you additional service time that can increase your pension amount and even allow you to retire earlier.

Only Tier 1 and Tier 2 members can purchase service time. There are many types of purchases, with the most popular being wait time and forfeited time.

  • Wait time is the six months you must work in a qualifying position before becoming a PERS member. Tier 1 and Tier 2 members do not receive service credit for wait time at retirement, but they can purchase it. OPSRP members automatically receive service credit for their wait time.
  • Forfeited time occurs when there is a prior membership withdrawal. Within guidelines, a Tier 1 or Tier 2 active or inactive member can restore service time by paying back the withdrawn amount plus 7.5% interest compounded annually from refund to retirement date.

The cost of each type of purchase is calculated differently. To find the estimated cost of your purchase, you need to request a written benefit estimate from PERS by submitting an estimate request form. You must be within two years of retirement to request a written benefit estimate.

A Tier 1/Tier 2 written benefit estimate provides an approximate calculation of your future pension. In addition, it automatically includes the purchase cost of your wait time and forfeited time (if you are eligible to purchase them). When PERS sends the written estimate to the you, they include a purchase letter that lists the cost of the purchase and the amount that the purchase will increase your pension benefit.

Purchases must be made within 90 days before your PERS retirement date. You can pay for the purchase by writing a check to PERS, transferring funds from your deferred compensation (457) or tax-sheltered annuity (403(b)) plan, or a combination of both; however, you cannot use your IAP funds or an IRA to make a purchase. Trustee-to-trustee transfer funds can be used toward service credit purchases, but they cannot be used toward a Police and Fire unit purchase.

Detailed information on Tier 1/Tier 2 purchase options is available on their Purchases webpage.

Health Insurance

All PERS retirees are eligible to continue coverage under existing group medical, dental and vision plans until Medicare eligible. To continue coverage on the college’s group plan as a retiree, you must submit an Insurance Enrollment Form prior to your effective date of retirement. Current plan options and rates are available in each employee group section of the Employee Benefits webpage.

Your “active employee” college insurance will end at the end of the month of your last paid day (example: if your last paid day is June 10, your active employee insurance will end June 30). If you elect to continue coverage, your “retiree” coverage will begin the first of the month immediately proceeding the conclusion of your “active employee” coverage (example: if your last day of active employee insurance is June 30, your retiree coverage will begin July 1).

If you, or any covered dependents, are already eligible for Medicare but opted out of enrollment upon eligibility due to having active employer group coverage, please complete Section A of the Request for Employment Information and send it to your Benefits Analyst in Human Resources. Human Resources will complete Section B and return the form to you. Social Security/Medicare requires this form to be submitted to them along with your application for Medicare benefits, to exempt you from being charged a penalty for “late enrollment”. The penalty does not apply when you document your prior group coverage through the Request for Employment Information form.

Apart from continuing on the college’s group health insurance, there are other options available including, but not limited to:

Regardless of which coverage option you choose, you are encouraged to begin the application process at least 90 days in advance of your retirement date.

Early Retirement Stipend & Health Insurance – Contracted Faculty

In addition to the retirement benefits from PERS, those retiring contracted faculty meeting service and age specific eligibility criteria may receive a monthly stipend and a college contribution toward health insurance. To be eligible, you must be at least 55 years of age, eligible to participate in the Oregon Public Employees Retirement System, and have been employed by LCC for a minimum of 10 years since the most recent date of hire. See Article 41 of the Collective Bargaining Agreement for more information.

These benefits are prorated if you have not worked 1.0 FTE in at least 5 of the last 10 years immediately preceding your effective date of retirement. Furthermore, if you retire between the ages of 55 and 57, the stipend and college insurance contribution amounts are re-calculated based on the actual number of months benefits are received, using the standard “maximum” total(s) that apply based on a retirement at age 58.

Monthly Stipend: For those retiring between age 58 and 62, the benefit is $175.00 per month ($87.50 per pay period), and ends the month in which you turn 62.

Example for someone retiring, prior to age 58, on the month of their 57th birthday:
$175 per month x 48 months between age 58 and 62 = $8400 total maximum benefit
$8400 maximum benefit divided by 60 months of actual payments = $140 per month prorated stipend

Health Insurance Contribution: For those faculty retiring between age 58 and 65, the maximum monthly insurance contribution is equal to the employer contribution of the "employee + spouse" enrollment tier in effective on the date of separation. This College contribution will continue until Medicare eligible or other comparable coverage is obtained, whichever comes earlier. If a retired faculty member's spouse or domestic partner is not yet eligible for Medicare, the maximum college contribution shall also apply to the spouse or domestic partner's coverage until they become Medicare eligible. There is no College contribution toward the coverage for other dependents beyond that of a spouse or domestic partner. Premiums that exceed the College's monthly contribution are the responsibility of the retiree and are payable directly to the Lane Community College.

Additional Resources