Tier I - Retirement Basics

Plan Membership

• 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 Social Security
       
  • Plan B members contribute:
    • 2% of their state salary on which Social Security taxes are withheld
    • 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.