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1. What is the Oregon Savings Growth Plan 4. How do I enroll in OSGP? 7. Do I have to pay taxes when I roll my
(OSGP)? Simply complete an enrollment packet, and IAP account into OSGP?
OSGP is a tax-deferred savings plan autho- return it to OSGP at 800 Summer St. NE, Suite You do not pay taxes when you roll money
rized by Section 457 of the Internal Revenue 200, Salem, OR 97301. To request a kit, call from your IAP account to your OSGP ac-
Code. Commonly referred to as a deferred OSGP at 503-378-3730 or print one from the count, but you will be responsible for taxes
compensation plan, OSGP is administered by website at http://www.oregon.gov/pers/osgp. when you withdraw those funds from OSGP.
PERS and provides state of Oregon employ- You can also fax it to 503-378-5888.
ees and some local government employees Because the IAP rollover is subject to a 10
with a convenient way to save for retirement. 5. What are the advantages of rolling my IAP percent penalty upon early withdrawal, you
It allows employees of an OSGP-participat- account into OSGP? may want to time your withdrawal accord-
ing employer to contribute a portion of their There are several advantages: ingly. There are several exceptions to the
salary on a pre-tax basis. Contributions and · you can keep all your retirement dollars in 10 percent penalty, which include payments
earnings continue to grow tax-deferred until one place, making it easier to manage your made to an employee after separation from
distribution. It is a great way to supplement money; service if the separation occurred after the
your PERS retirement benefit. · you are able to invest in a wide range of easy- employee attained the age of 55, having a
to-understand investments that are monitored qualifying disability, or receiving substan-
2. Can I roll my Individual Account Pro- by the Oregon Investment Council; tially equal periodic payments for at least
gram (IAP) balance into OSGP when I five years or until you reach age 59 1/2,
· you benefit from some of the lowest plan fees
retire or withdraw from PERS? whichever is the longer period.
in the country;
Yes; however, there are some basic require-
ments. Before retiring or terminating your · you pay no transaction fees for making invest-
For complete details, please refer to IRS
employment, you need to establish an OSGP ment changes; and
Publication 560 at www.irs.gov
account. Employees of PERS-covered public · when you retire or end your employment,
employers in Oregon are eligible to enroll you have the same flexible payout options that 8. Can I roll money from other retirement
in OSGP if their employer’s governing body are available with an Individual Retirement plans into OSGP?
agrees to participate. Account (IRA). Yes. You may roll funds from any eligible
plan or pre-tax IRA into OSGP. Eligible
3. Can I roll my PERS Tier One and Tier 6
6. What steps do I take to roll my IAP account plans include 401(a), 401(k), 403(b), or 457
Two lump-sum payments into OSGP when I into OSGP? accounts that you established with previous
retire or withdraw from PERS? You need to complete the IAP retirement or employers. You can bring these assets into
Yes, but if you choose to take a lump-sum withdrawal forms available through PERS your OSGP account for easier management
distribution from your PERS account, please and a Direct Transfer Rollover Acceptance and to take advantage of the lower plan fees
keep in mind that OSGP does not offer an form,which can be found on the PERS website. and diversified investment choices overseen
annuity option, and you would not be eli- by OIC.
gible for any annual cost-of -living adjust- Upon receipt of the completed forms, PERS
ments (COLA) on installment payments. You will request that a rollover check be issued. The If you have established an OSGP account
should check with a financial advisor before check will be made payable to OSGP, for your before you retire, you may roll other eligible
taking a lump-sum distribution from your benefit, and mailed to your address of record; plans and pre-tax IRAs into your OSGP ac-
PERS account. you then need to send it to OSGP. count at any time—even after you retire.
9. Can I make additional contributions to Oregon Savings Growth Plan
OSGP after I retire or withdraw from PERS? (Deferred Compensation)
If you are still working for an eligible employer, 800 Summer Street NE, Suite 200
you may contribute to OSGP from your pay- Salem, OR 97310-1348
check. After you retire, if you go back to work 503-378-3730
part-time for a PERS employer, you cannot take Note: Customer service representatives are
any distributions from OSGP, but you are still available from 7 a.m. to 5 p.m. PT Monday
through Friday.
eligible to contribute to your account. If you are
no longer working for an eligible employer, you SGP
OSGP website
may not make additional contributions. www.oregon.gov/pers/osgp
Public Employees Retirement System
10. Once I roll my account over, how can I get
money out of OSGP? 11410 SW 68th Parkway Answers to your
Tigard, Oregon 97223
When you terminate employment or retire, you
have several distribution options available to Customer Service Center 503-598-PERS questions about
you. Payments can be paid out: TTY 503-603-7766
Toll free 888-320-7377 Rolling Over Your
· over a specified number of years,
· in specified dollar amounts, Mailing Address
· in a single lump sum, or PERS
· in periodic, partial lump sums. P.O. Box 23700 Individual Account
Tigard, OR 97281-3700
11. Are there other advantages to rolling my PERS website Program (IAP)
IAP account into OSGP? www.oregon.gov/pers
By transferring your money into OSGP, not
only will your money be in one convenient plan, Account into the
This Q&A is for general informational purposes
but you will also have control over your invest- only and is not intended to provide legal advice.
ment choices. If there is any conflict between this brochure Oregon
You will be able to diversify your money in the
Y and federal law, Oregon law, or administra-
tive rules, the law and administrative rules
following nine fund options:
· short-term fixed income, shall prevail. Savings Growth
· stable value,
· intermediate bond, Plan (OSGP)
· balanced fund,
· large company value stock,
· stock index,
· large company growth stock,
· international stock, and
· small/mid-size company stock
Note: You will also have access to your accounts 24 hours Published by PERS in December 2005.
a day, seven days a week through the Web or telephone.
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