| Nonhazardous | Tier 1 Participation Prior to September 1, 2008 | Tier 2 Participation September 1, 2008 Through December 31, 2013 | Tier 3 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 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. |
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