Understanding PERS ‘Reform’

PERS Current System, 6% goes to IAP

Under the current system, you pay six percent of your salary into an Individual Account Program (IAP) for your own retirement.

 


After Senate Bill (SB) 1049 goes into effect, you will still pay six percent, but some is taken out of your IAP and put into an “Employee Pension Stability Account,” which you cannot access.

 


Diverting funds from IAPs into EPSAs is estimated to decrease benefits by 7.1-12.5 percent.

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