[DAS_Centralized_PERS_Services_Team] SB1049 Impacts to HR & Payroll

[TOBIASSON Shauna M * DAS]

Payroll & HR Partners



Many of you are aware of the passage of SB1049 and its impact to PERS benefits, and in turn, how the state reports employment data to PERS. This bill is complex and directly impacts the work payroll & HR perform. It requires multiple changes in business practice and system functionality. Over the next two months DAS will be using this E-News to keep you informed about these impacts and what you need to do at the agency level to be in compliance.



My goal for this first communication is to give you an overview of the bill and the coming changes that will impact your work. Please keep in mind that I'm using my own (less technical) words to explain the complexities of this bill. If you would like to read the detail of the statute, you may do so here<https://olis.leg.state.or.us/liz/2019R1/Downloads/MeasureDocument/SB1049/Enrolled>.



SB1049 contained multiple changes with varying effective dates as follows:
1.     Retiree Contributions. Effective 1/1/2020 through 2024 PERS employer contributions are due on ALL working retirees. This does not mean the 6% IAP portion, this means the employer pension contribution. This is known as the match rate, or employer rate.
2.     Retiree Work Hours. Effective 1/1/2020 through 2024 PERS working hour limitations are removed for all retired members. Note- this means retired employees can exceed previous hour limits without impact to their retirement benefit; however, the state has chosen to restrict the number of hours a retiree can work to 1040 hours, and temps and other positions have associated hour limits that are separate from this rule. This will be up to the agency and retiree to manage/monitor. DAS CPERS will not track retiree work hours in any capacity.
3.     Salary Cap. Effective 1/1/2020 the PERS salary cap will be lowered to $195,000.00 per year.
4.     IAP Redirect. Effective 7/1/2020 a portion of the employee's 6% IAP deduction will be redirected to an Employee Pension Stability Account for anyone earning greater than $2,500 per month. 2.5 % redirect for Tier 1 and 2 members, and a .75% redirect for OPSRP members.
5.     True-Up Deduction. Effective 7/1/2020 eligible employees will have the option to make an additional (after tax) contribution to their IAP in the same amount of the redirected contributions noted in #4 above.



DAS is working closely with PERS to determine what system changes are needed for implementation. From a system perspective the first leg of this journey begins with implementing changes to allow for the retiree contributions to be sent to PERS through OSPA. If you attended the October Payroll forum you may recall this being discussed. DAS is currently strategizing how to coordinate this change systematically beginning with the January 2020 pay period.



DAS CPERS is certain this will directly impact your status check process and how you set up the P010 screen for retirees.  Please keep an eye out for an e-news regarding this in December/January. This will also be discussed in detail at the January Payroll forum. This communication is being sent to anyone signed up for CPERS E-news. If you believe there may be other people in your agency who would benefit from receiving this information, please forward it on. We encourage all HR and payroll staff to sign up for CPERS E-News here: https://www.oregon.gov/das/Financial/Payroll/Pages/cpers.aspx



If you have any questions about this bill or the information I've shared here, please do not hesitate to contact me.

Thank you,


Shauna Tobiasson | Senior CPERS Analyst | DAS-EGS-CPERS
Ph: 503-378-6372 | shauna.m.tobiasson at oregon.gov
Website: http://www.oregon.gov/DAS/Financial/payroll/Pages/index.aspx





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