We are sending you this update to remind you that you will lose your current status as a PERS member for future employment if you have a break in service. A PERS Tier One or Tier Two member who has a break in service will retain PERS membership prior to the break, but will be enrolled in the Oregon Public Service Retirement Plan (OPSRP) after the break. Members will not lose PERS benefits earned prior to the break, which means at retirement, members will receive both a PERS and an OPSRP retirement benefit.

Only unpaid leave causes a break in service. Paid leave such as vacation, holiday, sick, jury duty, military duty, sabbatical and other authorized leave during which you are paid does not cause a break in service. If you are on unpaid leave from your job for a period of six full consecutive months, you will have a break in service and future retirement benefits will be earned under the OPSRP. There are some exceptions:

*Employees taking career development leave or family and medical leave under the federal or Oregon law do not have a break in service unless they are off for 12 full consecutive months. *Military leave does not count as a break in service as long as employees are reemployed within the time limits set by law after completing military service. *Legislative service has no limit so does not count as a break in service.

The PERS Board adopted permanent administrative rules for the break in service provision. The rules apply to active or inactive Tier One or Tier Two PERS members on leave or beginning their leave on or after August 29, 2003. The rules do not apply to employees who retired under PERS prior to August 29, 2003.

Please carefully review the Break in Service Q&A PERS prepared. Faculty members can ignore question 24 because sabbatical leaves are paid, and therefore, do not count as a break in service. You can find the Q&A at: http://hr.uoregon.edu/benefits/svcbreakqa.html or http://hr.uoregon.edu/benefits/svcbreakqa.pdf

For general information about the OPSRP benefits, please go to: http://hr.uoregon.edu/benefits/OPSRPsum.html or http://hr.uoregon.edu/benefits/OPSRPsum.pdf. If you have questions, please call PERS at 1-888-320-7377.

Total Lump Sum Options and 1039 Hour Appointments

PERS recently informed us that they provided agencies and members with incomplete information about employees who retired and took the total lump sum option (the employee account and the matching employer account). PERS now says taking the total lump sum option prevents a retiree from returning to work within the first six months of retirement under the 1039 hour rule. Members who retire under any option other than the total lump-sum option can return to work within the first six months under the 1039 hour rule.

If you are a PERS retiree who selected the total lump-sum retirement option or are thinking about taking this option, please contact PERS at 1-888-320-7377 and refer to the PERS web site at: http://hr.uoregon.edu/benefits/tlsreturn.html> or href="http://hr.uoregon.edu/benefits/tlsreturn.pdf

Helen Stoop, Benefits Administrator Human Resources University of Oregon