Open Enrollment Plan Year 2014 Open Enrollment HEM

Open Enrollment Plan Year 2014 Open Enrollment & HEM Health Assessment : 2 -Step Process Ø Step 1: PEBB Open Enrollment Completion – confirm your benefit elections, make changes, re-enroll in flexible spending accounts, AND indicate your HEM participation status for the 2014 plan year. Ø Step 2: HEM Health Assessment Completion – If you elect to participate in the HEM for 2014, you and your enrolled spouse/domestic partner must complete the HEM Health Assessment again between September 1 and October 31, 2013. Additional Information & Help Sessions: Ø Employee. Benefits@oregonstate. edu or (541) 737 -2805 Ø oregonstate. edu/admin/hr/openenrollment Ø Help Sessions – Valley Library, Barnard Classroom • October 16 th: 2 pm – 4: 30 pm • October 24 th: 2 pm – 4: 30 pm • October 28 th: 2 pm – 4: 30 pm 0 January 18, 2022

Open Enrollment PY 2014 4727 4500 4000 # Enrolled 3500 3000 2442 2500 2000 2608 1599 1500 1000 500 0 09. 30 1 January 18, 2022 10. 09 10. 10 10. 14 10. 21 10. 28 10. 31

2013 Legislation - ORP Optional Retirement Plan (ORP) • Senate Bill 269 • Recommendations from OUS ORP Committee • Creation of ORP Tier 4 • Effective for new hires on or after July 1, 2014 • No longer tied to PERS • Employer Contribution 8% • Employer Matching up to 4% 2 January 18, 2022

2013 Legislation - PERS • Senate Bill 822 (Regular Session) > Amends Cost of Living – impacts ALL retirees (current & new), all Tiers » 1. 5% on a benefit that is between $20, 001 and $40, 000, » 1% on a benefit that is from $40, 001 to $60, 000; and » 0. 25% on all benefits above $60, 000. > Eliminates Tax Remedy – impacts CURRENT retirees (retired prior to 1/1/2012) • Senate Bill 862 (Special Session) > Prevents “spiking” of Average Ending Salary for health insurance coverage for OSPRP members – does NOT impact OSU retirees > Allows for garnishment of PERS pension for restitution or compensatory damages if convicted of a felony > Prohibits most new legislators from becoming members of PERS 3 January 18, 2022

2013 Legislation - PERS • Senate Bill 861 (Special Session) > Further reduces Cost of Living – impacts ALL retirees, all Tiers » 1. 25% on a benefit that is between to $60, 000; » 0. 15% on all benefits above $60, 000; and » Supplemental Payments Yearly Benefit SB 822 COLA SB 861 (replaces SB 822) Supplement #2 for yearly Supplement #1* benefits $20, 000 or less <$20, 000 2. 00% 1. 25% 0. 25% $20, 000 - $40, 000 1. 50% 1. 25% 0. 25% --- $40, 000 - $60, 000 1. 00% 1. 25% 0. 25% --- > $60, 000 0. 25% 0. 15% $150 --- 4 January 18, 2022 0. 25%

2014 – PERS Changes • Assumed Rate – 7. 75% (from 8%) > Regular Tier 1 member accounts – earnings rate > Rate has not been adjusted since the 1980 s > Used to annuitize Money Match and Formula+Annuity pension calculations for Tier 1 members > Example of impact: If employee did not retire on 12/01/2013, would need to work an additional three months in order to receive the same level of benefit • Actuarial Equivalency Factors (AEFs) > Updated every two years > Used to annuitize the pension benefit over the retiree’s estimated life expectancy (Money Match and Formula+Annuity) > In the past, changes to AEFs would have required an employee to work 2 to 4 months longer to receive the same level of benefit > Scheduled to be adopted in November 2013 5 January 18, 2022

2014 – PERS Changes • Combined impact of the Assumed Rate to 7. 75% and subsequent change in AEFs > Impacts Tier 1 members retiring under either the Money Match or Formula+Annuity pension calculation > Does not impact PERS members retiring under the Full Formula calculation > Benefits would be reduced by approximately » 2. 3% for a Tier 1 member retiring at age 55 – Money Match » 1. 9% for a Tier 1 member retiring at age 65 – Money Match » Formula+Annuity benefits is impacted approximately half as much as the Money Match benefits > Employee not retiring on December 1, 2013, would need to work approximately 6 months longer to get the same level of benefit (estimate only based on prior impact of AEF changes + impact of Assumed Rate changes PERS has not published estimates yet, most likely to be posted in November 2013) 6 January 18, 2022

Resources • http: //oregonstate. edu/admin/hr/benefits/pers-update • http: //www. oregon. gov/pers/Pages/section/general_information /Special-Session-Legislative-Concepts. aspx • http: //www. oregonlegislature. gov/bills_laws 7 January 18, 2022