This is the gross earnings rate which is adjusted by the net rate of return. It is not the percentage of increase that will be applied to benefits. The Variable Fund net rate of return determines whether a member s monthly benefit remains the same, increases, or decreases effective January 1 and paid February 1. The amount of change depends on the actuarial factor that was used at the time of retirement. The actuarial factor is the amount it was assumed the member s account balance would earn in the future.
Benefits remain constant if earnings are the same.
If the Fund earns more than the factor, benefits increase in the following year. If it earns less, benefits decrease. Taxes are recalculated following the increase or decrease in the variable portion of the retirement benefit and will be reflected in changes to withholding. Board chair Holeman offers comments on 1999 The 1998-1999 fiscal year included a biennial session of the Oregon Legislature. Many PERS-related proposals were considered, but very few went through the entire process to become law.