| Tier 2 Participation | |||
| Tier 1 | September 1, 2008 | Tier 3 | |
|---|---|---|---|
| Nonhazardous | Participation Prior to September 1, 2008 | Through December 31, 2013 | Participation January 1, 2014 |
| Unreduced Retirement Benefit | Any age with 27 years of service. Age 65 with 48 months of service. Money purchase for age 65 with less than 48 months based on contributions and interest. | Rule of 87: Member must be at least age 57 and age plus earned service must equal 87 years at retirement to retire under this provision. Age 65 with 5 years of earned service. No month purchased calculations. | |
| Reduced Retirement Benefit | Any age with 25 years of service. Age 55 with 5 years of service. | Age 60 with 10 years of service. Excludes purchased service (exception: refunds, omitted, free military). | No reduced retirement benefit. |
| Hazardous | |||
| Benefit Formula | Final Compensation × Benefit | Factor × Years of Service | Cash Balance Plan |
| Final Compensation | Highest 3 fiscal years (must contain at least 24 months). Includes lumpsum compensation payments (before and at retirement). | 3 highest salaries; each year must contain 12 months. Lump-sum compensation payments (before and at retirement) are not to be included in creditable compensation. | No Final Compensation |
| Benefit Factor | 2.49% | 10 years or less = 1.30%. Greater than 10 years, but no more than 20 years =1.50%. Greater than 20 years, but no more than 26 years = 2.25%. Greater than 25 years = 2.50%. | No benefit factor. A life annuity can be calculated in accordance with actuarial assumptions and methods adopted by the board based on member's accumulated account balance. |
| Cost of Living | No COL A unless authorized by the Legislature. If authorized, the COL A is limited to 1.5%. | ||
Cost of Living No COLA unless authorized by the Legislature. If authorized, the COLA is limited to 1.5%. Adjustment (COLA) This impacts all retirees regardless of Tier.
Unreduced Retirement Benefit Any age with 20 years of service. Age 55 with 60 months of service. Any age with 25 years of service. Age 60 with 60 months of service. Any age with 25 years of service. Age 60 with 60 months of service.
Reduced Retirement Benefit Age 50 with 15 years of service. Age 50 with 15 years of service. No reduced retirement benefit.
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