Your Retirement Benefits
Your benefit thus far-You earn retirement benefits over your years of participation in the plan. Should your State employment end before you retire, the Plan will provide you with a vested right to a monthly benefit if you meet the term of the 10 year service requirement.
If YOU do not qualify for retirement when you leave State service, you may elect to receive a refund of your contributions and interest in lieu of any other benefits from the Plan.
Contributions and Interest, 7/1/1999 $13,279
Interest earned 7/1/1999 - 6/30/2000 $663
Contributions made 7/l/1999 - 6/30/2000 $796
Your current contribution balance, with interest, as of 7/l/2000 $14,738
Your benefit at normal retirement..The retirement income you receive will depend on your length of service and your average annual covered salary for the three highest 12 consecutive month periods prior to retirement. By counting the years of service you will have in the Pension System at retirement, and by approximating what your average annual covered -salary will be, you can find your estimated retirement benefit in the chart below.
Please realize that this chart is provided only as a guide. It your salary falls between two of the figures in the chart, your retirement benefit will fall between the two monthly benefit amounts shown for those salaries.
Years of Straight Life Monthly Benefit, if
Plan Service Average Annual Salary is:
at age 65 $40,000 $45,000 $50,000 $55,000
10 $626 $710 $793 $876
15 $940 $1,065 $1,190 $1,315
20 $1,253 $1,420 $1,586 $1,753
25 $1,566 $1,775 $1,983 $2,191
30 $1,880 $2,130 $2,380 $2,630
35 $2,193 $2,485 $2,776 $3,068
40 $2,506 $2,840 $3,173 $3,506
000001 4
As a Tier I member, you may retire with a normal retirement benefit at age 65 if you have 10 years of credited service. You may also retire with a normal retirement benefit at age 55 if you have 25 or more years of credited service or at age 70 if you have at least 5 years of credited service. A reduced benefit may be paid at age 55 with 10 years of actual state service or at age 60 with 10 years of any combination of the following types of credited service: actual state, war-time military, certain leaves of absence without pay and municipal. You may use the early retirement benefit formula in the Tier I summary plan description booklet to determine your approximate benefit.
Yout benefit payment options at retirement-When you retire, you must choose to receive your retirement income in a form of benefit payment best suited to your needs and the needs of those who may rely upon you to provide continuing income. If you have continuously participated in the Pension System from 6/30/1981 as a full-time employee and assuming $45,000 is your average annual salary at retirement, the chart below illustrates the various payment options. It was assumed you are married, your spouse is the sole contingent annuitant and is the same age as you. Please refer to the section entitled 'About Your Retirement Benefits-" on page 2 of this statement for more information regarding payment options.
Estimated Monthly Benefit At Age 65 Beginning 7/1/2026
Payment Options Income During Your Lifetime Income After Your Death
Straight Life Annuity $3,195 $0
50% Spouse $2,834 $1,417
100% Contingent Annuitant $2,548 $2,548
10 Year Period Certain $2,984
payable only for 10 years after retirement
20 Year Period Certain $2,483 $2,483
payable only for 20 years after retirement
Other Benefits
A reduced amount of group life insurance will also be provided. When you retire, if eligible, you may elect medical and dental coverage for you and your eligible dependents. You may be responsible for a share of the medical insurance premium depending upon the plan you select; the state currently pays 20% of your dental insurance premium- If you are consireing retirement you should see your agency personnel office or the Retirement & Benefit Services Division's Counseling Services Unit for more accurate estimates.
000001 5