What does one more year add to an Oregon PERS pension?
One more year of service adds 1.67% of your final average salary a year in Tier One and Tier Two ($97.42 a month on $70,000), or 1.5% in OPSRP ($87.50 a month). Before your full-benefit age it also raises the early retirement factor, which is often worth more. Oregon PERS webpage 'Tier One Tier Two overview and benefit calculation', Full Formula; Oregon PERS Benefit Comparison Chart (Dec. 2024), p. 1; ORS 238.300(2)(a)(B) Oregon PERS webpage 'OPSRP overview and benefit calculation', General service; ORS 238A.125(1)(b)
These examples use a $70,000 final average salary that stays the same. Raises would add more. Factors are Oregon PERS's 2026 table. Oregon PERS Actuarial Equivalency Factors eff. Jan. 1, 2026, pp. 5-7, Table 1: Early Retirement Factors
Tier Two at 57 with 27 years
| Start at | Monthly | Added |
|---|---|---|
| 57, 27 yrs reduced 22.5% | $2,038.44 | — |
| 58, 28 yrs reduced 15.7% | $2,299.43 | +$261 |
| 59, 29 yrs reduced 8.2% | $2,593.42 | +$294 |
| 60, 30 yrs full benefit | $2,922.50 | +$329 |
At 60 the member has 30 years and is at Tier Two's full-benefit age, so the factor disappears.
OPSRP at 55 with 27 years
| Start at | Monthly | Added |
|---|---|---|
| 55, 27 yrs reduced 56% | $1,039.50 | — |
| 56, 28 yrs reduced 52.4% | $1,166.20 | +$127 |
| 57, 29 yrs reduced 48.5% | $1,306.81 | +$141 |
| 58, 30 yrs full benefit | $2,625 | +$1,318 |
| 59, 31 yrs full benefit | $2,712.50 | +$88 |
At 58 with 30 years, OPSRP pays a full benefit. Oregon PERS OPSRP Preretirement Guide (June 2026), p. 6, Normal retirement age with full benefits; ORS 238A.160(1), (3)
OPSRP at 62 with 20 years
| Start at | Monthly | Added |
|---|---|---|
| 62, 20 yrs reduced 22.5% | $1,356.25 | — |
| 63, 21 yrs reduced 15.7% | $1,549.01 | +$193 |
| 64, 22 yrs reduced 8.2% | $1,767.15 | +$218 |
| 65, 23 yrs full benefit | $2,012.50 | +$245 |
After 65, each year adds only 1.5% of salary. ORS 238A.125(3)
Years where one more matters most
- Vesting, 5 years: before then, leaving means no pension; see leaving. Oregon PERS OPSRP Preretirement Guide (June 2026), p. 6, Vesting; ORS 238A.115; Oregon PERS webpage 'Eligibility to retire: Tier One/Tier Two'; Oregon PERS Benefit Comparison Chart (Dec. 2024), p. 1, Vesting
- 8 years: the minimum for the $60 RHIA health subsidy in Tier One and Tier Two; see retiree health. Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 29, Subsidies; ORS 238.420(1)-(3)
- Full benefit, Tier One: age 58, or any age with 30 years. Tier Two: age 60, or any age with 30 years. Oregon PERS Tier One/Tier Two Preretirement Guide (June 2026), p. 9, Retirement ages/years of service: Full Benefits; Oregon PERS Employer Guide Ch. 1 (Sept. 2026), p. 27
- Full benefit, OPSRP: age 65, or age 58 with 30 years (school employees: 30 calendar years of active membership). Oregon PERS OPSRP Preretirement Guide (June 2026), p. 6, Normal retirement age with full benefits; ORS 238A.160(1), (3)
For OPSRP school employees, the law's age-58 rule counts calendar years in which you were an active member. Oregon PERS's guide says 30 years of retirement credit.
What we use: your years of service, unless you enter calendar years of active membership.
A year of work also adds to your IAP account: 6% of pay goes in on top of the pension; see the IAP. Oregon PERS Tier One/Tier Two Preretirement Guide (June 2026), pp. 21-23; Oregon PERS OPSRP Preretirement Guide (June 2026), pp. 13-17 Not sure which program you're in? See which tier.
What the sources say
- Working another year adds a year of service to the formula and, if you are retiring early, raises the early-retirement factor. OPSRP gives no extra increase for working past normal retirement age.Oregon PERS Actuarial Equivalency Factors eff. Jan. 1, 2026, Table 1; ORS 238A.125(3)
- School employees who work a whole school term also get credit for the summer months, so leaving mid-term can cost months you were counting on.Oregon PERS webpage 'School employees'; Oregon PERS Employer Guide Ch. 1 (Sept. 2026), pp. 44-45
Questions
What does one more year add?
In Tier One and Tier Two, 1.67% of your final average salary a year; in OPSRP, 1.5%. Before your full-benefit age, it also raises your early retirement factor, which is often worth more.
Is reaching 30 years a big deal?
Yes. Tier One and Tier Two members with 30 years get a full benefit at any age. OPSRP members with 30 years get a full benefit from 58 instead of 65.
Does OPSRP pay more for working past 65?
No. Each extra year adds service, but there's no extra increase for starting later.
School years and summer credit
School employees who work a whole term also get credit for the summer months. Leaving mid-term can cost those months, which matters if you're counting on exactly 30 years.
The calculator link opens with the Tier Two example above filled in; change it to your own dates.
Source: Oregon PERS Tier One/Tier Two and OPSRP Preretirement Guides, Published June 2026, Oregon PERS Tier One/Tier Two Preretirement Guide (June 2026) pp. 9, 21, 22, 23; Oregon PERS OPSRP Preretirement Guide (June 2026) pp. 6, 13, 14, 15, 16, 17; Oregon PERS Benefit Comparison Chart (Dec. 2024) p. 1; Oregon PERS Employer Guide Ch. 1 (Sept. 2026) pp. 23, 24, 27, 29, 44, 45; Oregon PERS Actuarial Equivalency Factors (Jan. 1, 2026) pp. 5, 6, 7; Oregon PERS webpages: Eligibility to retire: Tier One/Tier Two; OPSRP overview and benefit calculation; School employees; Tier One Tier Two overview and benefit calculation; ORS 238.300, 238.420, 238A.115, 238A.125, 238A.140, 238A.160. Last reviewed .