ORS State Employees DB - Postretirement Increases

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Postretirement Increases

You can look forward to your 3 percent (not to exceed $25 per month) postretirement increase beginning with the second October after your retirement effective date. Your postretirement increase doesn't compound, but it does accumulate. So every October, you can expect to get $25 more per month than you did the previous year, assuming you're eligible for the maximum increase. (Note: The percentage may be adjusted if you receive an equated or survivor pension.)

Example of a Postretirement Increase

Mr. Smith retired December 1, 2008, with a monthly pension payment of $1,200. Beginning October 2010 (the first October after he's been retired a full year) he'll begin receiving an additional $25 per month. (Though 3 percent of $1,200 is $36, the postretirement increase is capped by law at $25 per month.)

The first October, Mr. Smith will receive $1,225 ($1,200 + $25).

The next October, Mr. Smith will receive $1,250 ($1,200 + $25 +$25).

The third October, Mr. Smith will receive $1,275 ($1,200 + $25 +$25 +$25), and so on.