What to Expect After You Apply

Here is what happens from the time you apply for retirement through miAccount and submit all required documents to when you begin receiving regular monthly pension payments. Remember, these dates are approximate and represent the minimum time required to complete each process. 

Application review.

After you submit your application, we review it to make sure all required information and documentation are received. If anything is missing or incomplete, we will contact you with an explanation of what is needed; this could delay processing your application.

Benefit summary and preliminary estimate. 

When you submit your retirement application through miAccount, a summary of your selections is immediately available to you including your retirement effective date, pension option, survivor option beneficiary, insurance choices, direct deposit instructions, and tax exemptions requested. It will also give you a preliminary pension estimate which will not include your final salary, final payouts, or any recently purchased service credit.

Final Payroll Details. 

About 4 weeks before your retirement effective date, we will ask your employer(s) to verify your last day worked and your final salary. Your payroll office can't provide this information to ORS until you have terminated employment and received your final paycheck. This process ensures all your wages have been reported along with any pay received in addition to your base contract such as retroactive contract settlements, longevity, overtime pay, etc. 

ORS cannot make a final eligibility determination until every employer you worked for during your final average compensation period has submitted final payroll details. 

Award letter. 

Once we have your final wage and service information, we will verify your pension eligibility and put you on the retirement payroll. You'll get an award letter that tells you how much your pension payment is and when you can expect it. This letter details how your pension was calculated (final average compensation and service totals) as well as any deductions (insurance premiums, taxes) reflected in the payment amount. When you receive your award letter, you'll be given information about payment schedules, taxes, and so forth, as well as a guide to your reporting responsibilities. Keep this information in a safe place so you have an easy-to-find record of your pension benefits.

If you choose a retirement effective date that falls during a time when a large volume of applications are being submitted, we may process your application "on the fast track" so we can provide you with your first pension payment on a timely basis.

This simply means that we would not wait for your final payroll details from your employer to calculate your pension - we would use the payroll information already reported. If this situation applies to you, we will send you an initial benefit award letter detailing your initial pension calculation and insurance information.

After your employer submits all of your final employment information, we will review your account and correct your monthly pension amount. If you were underpaid, we will issue a retroactive payment, and if you were overpaid, we will work with you to recover any overpayment. In either case, we will provide an updated status of your pension calculation.

First pension payment. 

Your first pension payment should arrive one to three months after you terminate all public school employment and receive your last paycheck, provided you meet all eligibility requirements and all required retirement documents are on file with ORS. If the first payment is delayed while we gather final salary information, you will be paid retroactive to your retirement effective date. 

Ongoing pension payments.

Pensions are paid on the 25th of each month for the month they are due. If the 25th falls on a weekend or holiday, watch for your payment on the preceding business day (December payments are issued about one week early). 

Your insurance enrollments.

We will forward your insurance enrollment information to your chosen health, prescription drug, dental, and vision carriers after all proofs, including your final salary affidavit, are on file. Insurance carriers need 45 days to process the enrollment and issue your identification card(s).

Because of the processing time and because your insurance eligibility hinges on your pension eligibility determination, be sure to apply well in advance. You should also plan ahead for any anticipated medical expenses during the transition period to make sure you'll be covered. If you require health services before your cards arrive, save your itemized receipts for submission afterwards. Or, if necessary, have the provider verify your coverage with ORS.

If you disagree with the decision.

If you disagree with a determination made by ORS concerning your retirement benefits, you may request a review by writing to ORS, stating the basis for your disagreement and providing all information you believe supports your position. Your request will be thoroughly reviewed and you will be notified in writing of the outcome.

IRS pension limits

Section 415(b) of the IRS code, which limits the amount of a pension that is payable from a defined benefit plan, affects a small group of retirees who earned a very high pension. If you are in this group, ORS will let you know how the pension amount that exceeds the IRS limit will be paid to you.

If you are overpaid or underpaid.

The retirement law requires ORS to correct any payment errors. As a result, any person who receives a benefit payment in error will be required to repay the benefit. This also applies if you are underpaid - if your payroll office reports a wage correction that results in an underpayment of benefits to you, you will be reimbursed.