Benefits Provided
| Tier 1 Participation prior to July 1, 2008 | Tier 2 Participation on or After July 1, 2008 | |
|---|---|---|
| Covered Employees: | University faculty and professional staff that do not choose the Optional Retirement Plan (Deferred Contribution) | University faculty and professional staff that do not choose the Optional Retirement Plan (Deferred Contribution) |
| Benefit Formula: | Final Compensation X Benefit Factor X Years of Service | |
| Final Compensation: | Average of the highest 5\nannual salaries reduced 5% per year from the earlier of\nage 60 or the date 27 years of service would have been completed. Average of the highest 3 annual salaries if age 55 with 27 or more years of service. The minimum annual service allowance for all members is $440 multiplied by credited service. | Average of the highest 5 annual\nsalaries reduced 6% per year\nfrom the earlier of age 60 or the\ndate 27 years of service would\nhave been completed. Average\nof the highest 3 annual salaries\nif age 55 with 27 or more years\nof service. The minimum annual\nservice allowance for all\nmembers is $440 multiplied by\ncredited service. |
| Benefit Factor: | Non-University members: 2.00% for service prior to 7/1/1983; 2.50% for service after 7/1/1983; 2.00% if participation after 7/1/2002 and less than 10 years; 2.50% if participation after 7/1/2002 and more than 10 years; 3.00% if retire after 7/1/2004 with more than 30 years. University members: 2.0% for each year of service. | Non-University members: 1.70% if less than 10 years; 2.00% if greater than 10 years, but no more than 20 years; 2.30% if greater than 20 years, but no more than 26 years; 2.50% if greater than 26 years, but no more than 30 years; 3.00% for service greater than 30 years. University members: 1.50% if less than 10 years; 1.70% if greater than 10 years, but less than 20 years; 1.85% if greater than 20 years, but less than 27 years; 2.00% if greater than 27 years. |
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.
40.