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"Tier 1" Retirement Annuity
If you first began employment before January 1, 2011 and you meet the minimum criteria of having served for 10 years and are at least 50 years of age, you are eligible for a monthly annuity calculated from a Defined Benefit formula known as the Minimum Formula.
"Tier 1" Minimum Formula Annuity Details:
- Members earn 2.4% for each year of service.
- The Final Average Salary "FAS" is the average of the 48 highest consecutive months’ salary within the last 10 years of service.
- "Normal" retirement is considered to be age 60, or after 30 years of service. If you retire early (before age 60 with less than 30 years of service), your annuity is reduced by ½% per month before age 60.
- Each year of service contributed into the optional plan earns an additional 1%, subject to any reduction for early retirement.
- 80% is the maximum benefit that you can accrue.
- The annual annuity increase is 3% compounded. If the member had less than 30 years of service and is under age 60, the first annuity increase is the January 1 following age 60. If the member had 30 or more years of service or is age 60 or older, the first increase is the January 1 following the first anniversary after retirement.
Sample Calculation for the "Tier 1" Minimum formula:
| Scenario 1 |
| Assuming Age 55 With 20 years of Service Final Average Salary |
$3,000.00 |
| 20 years @ 2.4% |
48% |
| |
$1,440.00 |
| 30% Age 55 Reduction |
70% |
| Annuity |
$1,008.00 |
| Scenario 2 |
| Assuming Age 60 With 25 years of Service Final Average Salary |
$3,400.00 |
| 25 years @ 2.4% |
60% |
| |
$2,040.00 |
| No Age Reduction |
100% |
| Annuity |
$2,040.00 |
See the Age and Service Annuity Percentage Table
Questions
If you have any questions about your Retirement benefits, please contact us.