| 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 Adjustment (COLA) | No COLA unless authorized by the Legislature. If authorized, the COLA is limited to 1.5%. 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. |
47.