Office of the State Comptroller
Retirement Services Division

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.

 

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