||Office of the State Comptroller
Tier I - Retirement Basics
- Tier I is a contributory defined benefit retirement plan
- Generally, Tier I applies to state employees first hired prior
to July1, 1984, who elected and have maintained membership.
- There are 3 different plans in Tier I (Plans A, B, and C)
- Plan A members contribute:
- 5% of their state salary and do not participate in
- Plan B members contribute:
- 2% of their state salary on which Social Security taxes
- 5% of their state salary on which Social Security taxes
are not withheld
- Plan B members will have their state pensions
reduced by a small amount (the Plan B Reduction) upon
reaching the full Social Security Age (Age 66 for those
born between 1943 and 1954).
- Plan C members contribute:
- 5% of their total state salary and participate in Social
Security with no adjustments.
- The majority of Tier I members participate in Plan B. Plan A has
been closed to new members since 1973.
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