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State Retirement System
(Continued from page 7)
lars and cents amount of their contri­
bution to the Retirement Fund.. This
in turn produces an increase in the
amount of the employer’s matching
contribution. It all' adds up to a higher
retirement income than w ould, be the
case if the employee remained forever
at the salary he or she is now receiv­
ing.
The benefits received by the em­
ployee at retirement age are derived
from two types of service— prior ser­
vice which means service performed
for the employer before July 1, 1946;
and future service which means ser­
vice performed for the employer after
July 1, 1946. The cost of all of the
benefits derived from prior service are
assumed by the employer, the employee
paying no part thereof. Benefits from
future service are financed by the con­
tributions of both the employee and
the employer.
Benefits from prior service are these:
A t retirement age the employee receives
$2.50 per month for life for each year
or major fraction of a year of continu­
ous service with a maximum of twenty
years credit allowed. Continuous service
Route 4, Box 234
Phone 292
Rogue River Sand & Gravel Co.
P. P. Proctor, Owner
Sand, Gravel & Crushed Rock
East Park St.
Grants Pass, Ore.
OREGON AMERICAN
LUMRER CORP.
Vernonia, Oregon
Manufacturers of
Old Growth Yellow Fir Lumber
D.E.T.. Uppers and Commons
is defined as service not interrupted for
more than five years.
The objective of the act, so far as
benefits for future service are concern­
ed, is to provide an ordinary employee
who works 30 years or more after July
1, 1946, with a pension of approxi­
mately half pay. This applies to salaries
not in excess of $200 per month, since
the employe ris not required to match
employee contributions on that portion
of an employee’s salary in excess of
$200.
Terms of future service for less than
thirty years will produce pensions, from
future service alone, proportionately
reduced.
Employees receiving $200 or less per
month will, therefore, create through
future service alone approximately 1/30
of half pay for each year of such future
service. The following examples illus­
trate the method used in estimating the
amount of pension one may expect.
John Doe began teaching at age 35
and is now 50 years of age. He has
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