What are Target-Date Funds?
IAP'sTarget-Date Fundstructure gradually reduces investment risk as participants age. Younger workers take on more investment risk in exchange for higher, long-term growth potential. Older workers are protected from adverse market volatility as they approach and enter retirement. Keep reading for information on how you can choose a different target-date fund.
This video explains how target-date funds make retirement investing easier.
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What’s MyTarget Date Fund?
Your target-date fund is based on yourbirth yearand named for the date range when you might expect to retire.
In 2020, the Oregon Investment Council added a new 2065 Target-Date Fund for younger workers who've entered the system and consolidatedthe 2020 Target-Date Fund into the Retirement Allocation Fund.
To learn more about your target-date fund and its performance, find your birth year on the left in the table below and click the corresponding down arrow.
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1957 or earlierIAP Retirement Allocation Fund
Between 1958 and 1962IAP 2025 Target Date Fund
Between 1963 and 1967IAP 2030 Target Date Fund
Between 1968 and 1972IAP 2035 Target Date Fund
Between 1973 and 1977IAP 2040 Target Date Fund
Between 1978 and 1982IAP 2045 Target Date Fund
Between 1983 and 1987IAP 2050 Target Date Fund
Between 1988 and 1992IAP 2055 Target Date Fund
Between 1993 and 1997IAP 2060 Target Date Fund
In 1998 or afterIAP 2065 Target Date Fund
When Are IAP Returns Reflected in My Account?
While Oregon Treasury reports overall investment fund performance quarterly, individual IAP account returns are only credited by PERS each April for the previous calendar year. Earnings credited to member accounts by PERS are different than the amount earned by investments. This is due to PERS administrative expenses and reserve requirements provided in statutes, administrative rules, and PERS Board actions. You can find more details on the PERS website:https://oregon.gov/pers/MEM/Pages/What-is-the-IAP.aspx.
Member Choice Allows You to Select a Different IAP Target-Date Fund
IAP participants may choose to invest their IAP balance in a different target-date fund thanks to provisions of Senate Bill 1049, passed in 2019. Your default IAP target-date fund is automatically chosen based on your birth year. During an enrollment period held each September by PERS, you may choose to invest your IAP balance in a target-date fund that is more reflective of your own risk tolerance than the default based on your age.
For more information about this voluntary option, please readUnderstanding IAP Target-Date Funds and Member Choice.
To learn more about IAP Member Choice and the other changes approved by the Legislature in SB 1049, visit the PERS website:https://www.oregon.gov/pers/MEM/Pages/SB1049.aspx.
In addition, you cansign up for email updates from PERSabout SB 1049.
Background on IAP Target-Date Funds
In 2018, the Individual Account Program was converted to a target-date fund format, reflecting investment best practices that better protects older workers from potential losses as they approach and enter retirement.
Before 2018, all IAP accounts had exactly the same investment risk, independent of participants’ age and retirement horizon profiles. This uniform approach was not consistent with fiduciary standards and investment best practices.
How Else Can I Stay Involved?
Subscribe to our newsletter!“Invested for You" is written for Oregon Public Employees Retirement Fund (OPERF) beneficiaries.
To read past issues,click here.
I Have Questions About my IAP Account
Visitwww.oregon.gov/persto learn more about your retirement benefits. You may also view your IAP account through iap.voya.com. Questions about retirement benefits may be directed to PERS Member Services at 888-320-7377 or via email atPERS.Member.Services@state.or.us.Representatives are available Monday–Friday 8:30 a.m. to 5:00 p.m. (Pacific Time).
I Have Questions About Treasury or IAP Investments
Please contact Treasury about the investment structure of the IAP and related matters atIAP.comments@ost.state.or.us.Please note that Treasury does not have individual member account data.
