Open Enrollment Plan Year 2014
Open Enrollment & HEM Health Assessment : 2-Step Process
 Step 1: PEBB Open Enrollment Completion – confirm your benefit elections, make
changes, re-enroll in flexible spending accounts, AND indicate your HEM
participation status for the 2014 plan year.
 Step 2: HEM Health Assessment Completion – If you elect to participate in the HEM
for 2014, you and your enrolled spouse/domestic partner must complete the HEM
Health Assessment again between September 1 and October 31, 2013.
Additional Information & Help Sessions:
 Employee.Benefits@oregonstate.edu or (541) 737-2805
 oregonstate.edu/admin/hr/openenrollment
 Help Sessions – Valley Library, Barnard Classroom
• October 16th: 2pm – 4:30pm
• October 24th: 2pm – 4:30pm
• October 28th: 2pm – 4:30pm
0
June 28, 2016
Open Enrollment PY 2014
4727
4500
4000
# Enrolled
3500
3000
2442
2500
2608
2000
1599
1500
1000
500
0
09/30
1
June 28, 2016
10/09
10/10
10/14
10/21
10/28
10/31
2013 Legislation - ORP
Optional Retirement Plan (ORP)
• Senate Bill 269
• Recommendations from OUS ORP Committee
• Creation of ORP Tier 4
• Effective for new hires on or after July 1, 2014
• No longer tied to PERS
• Employer Contribution 8%
• Employer Matching up to 4%
2
June 28, 2016
2013 Legislation - PERS
• Senate Bill 822 (Regular Session)
> Amends Cost of Living – impacts ALL retirees (current & new), all Tiers
» 1.5% on a benefit that is between $20,001 and $40,000,
» 1% on a benefit that is from $40,001 to $60,000; and
» 0.25% on all benefits above $60,000.
> Eliminates Tax Remedy – impacts CURRENT retirees (retired prior to 1/1/2012)
• Senate Bill 862 (Special Session)
> Prevents “spiking” of Average Ending Salary for health insurance coverage
for OSPRP members – does NOT impact OSU retirees
> Allows for garnishment of PERS pension for restitution or compensatory
damages if convicted of a felony
> Prohibits most new legislators from becoming members of PERS
3
June 28, 2016
2013 Legislation - PERS
• Senate Bill 861 (Special Session)
> Further reduces Cost of Living – impacts ALL retirees, all Tiers
» 1.25% on a benefit that is between to $60,000;
» 0.15% on all benefits above $60,000; and
» Supplemental Payments
Yearly Benefit
SB 822
COLA
SB 861 (replaces SB 822)
Supplement #2 for yearly
Supplement #1*
benefits $20,000 or less
<$20,000
2.00%
1.25%
0.25%
$20,000 - $40,000
1.50%
1.25%
0.25%
---
$40,000 - $60,000
1.00%
1.25%
0.25%
---
> $60,000
0.25%
0.15%
$150
---
4
June 28, 2016
0.25%
2014 – PERS Changes
• Assumed Rate – 7.75% (from 8%)
> Regular Tier 1 member accounts – earnings rate
> Rate has not been adjusted since the 1980s
> Used to annuitize Money Match and Formula+Annuity pension
calculations for Tier 1 members
> Example of impact: If employee did not retire on 12/01/2013, would
need to work an additional three months in order to receive the same
level of benefit
• Actuarial Equivalency Factors (AEFs)
> Updated every two years
> Used to annuitize the pension benefit over the retiree’s estimated life
expectancy (Money Match and Formula+Annuity)
> In the past, changes to AEFs would have required an employee to work 2
to 4 months longer to receive the same level of benefit
> Scheduled to be adopted in November 2013
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June 28, 2016
2014 – PERS Changes
• Combined impact of the Assumed Rate to 7.75% and
subsequent change in AEFs
> Impacts Tier 1 members retiring under either the Money Match or
Formula+Annuity pension calculation
> Does not impact PERS members retiring under the Full Formula
calculation
> Benefits would be reduced by approximately
» 2.3% for a Tier 1 member retiring at age 55 – Money Match
» 1.9% for a Tier 1 member retiring at age 65 – Money Match
» Formula+Annuity benefits is impacted approximately half as much as the
Money Match benefits
> Employee not retiring on December 1, 2013, would need to work
approximately 6 months longer to get the same level of benefit (estimate
only based on prior impact of AEF changes + impact of Assumed Rate changes
PERS has not published estimates yet, most likely to be posted in November 2013)
6
June 28, 2016
Resources
• http://oregonstate.edu/admin/hr/benefits/pers-update
• http://www.oregon.gov/pers/Pages/section/general_information/
Special-Session-Legislative-Concepts.aspx
• http://www.oregonlegislature.gov/bills_laws
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June 28, 2016