Office of the State Comptroller
Retirement Services Division

Tier I - Retirement Basics
Updated October 2013

Introduction

Welcome to the Tier I Retirement Counseling Workshop. Our goal is to provide the same information in this setting that we provide in our traditional counseling sessions. This is not meant to cover every retirement provision or detail. But rather, this is a general explanation of the most important retirement issues and considerations.

If you fall within our target audience-current Tier I state employees transitioning directly from state employment into retirement-we hope to provide you with the information you will need to make informed retirement decisions.

While this workshop is meant to be helpful and informative, nothing contained in it should be considered a promise or contract. The applicable retirement statutes, regulations, and decided cases that construe them are the governing law. The Retirement Services Division reserves the right to revise, change or revoke without notice the information, rules and procedure detailed in this workshop.

Plan Membership

Eligibility Requirements

 

Retirement Type Age And Service Requirements For Commencement Of Pension Benefits Entitled To COLA
Normal Age 55 with 25 Years Service Credit Yes
Age 65 with 10 Years Service Credit Yes
Age 70 with 5 Years Service Credit Yes
Early Age 55 with 10 Years Actual State Service Yes
Age 60 with 10 Years Service Credit Yes
Vested Rights*
Age 55 with 10 Years Actual State Service (with the last five years continuous ) Yes
Age 60 with 10 Years Credited Service (with the last five years continuous) Yes

* Members who left state service after satisfying the minimum service credit requirement, but before satisfying the minimum age requirement.

Benefit Calculation

Tier I Benefit Estimator:

Tier I Benefit Formula and Factors:

Benefit Rate   X Retirement Service Credit X Average Salary

Benefit Rate:

Retirement Service Credit:

Part-Time Service:

Average Salary

Plan B Reduction

1/2 X Percent of Entitlement X $4,800.00 (statutory figure)

Cost of Living Adjustment
 

60% of the annual CPI-W increase up to 6%

PLUS

75% of the annual CPI-W above 6%

Survivor Benefits

Overview

Option D - Straight Life Annuity

Option A - 50% Spouse

Option B - 50% or 100% Contingent Annuitant

Option C - 10 Year or 20 Year Period Certain

Spousal Waiver

Benefit Payment Options and Health Insurance

Insurance: Health, Dental, and Life

General Eligibility Requirements for Health and Dental Insurance:

Open Enrollment

Available Health Insurance Plans - In-State Retirees

Available Health Insurance Plans - Out-of-Area Retirees:

Health Enhancement Program (HEP)

Medicare's Impact on Retiree Health Insurance:

Available Dental Plans

Group Life Insurance

The Retirement Process

Notification to Agency

Required Forms

Audit Process

Pension Checks

Agency Payouts

Re-Employment

5-142(a) Disability Compensation

Sources of Information

Counseling Services:

Other Resources:

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