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:
      • 3% more than Plan B members on their state salary and do not participate in Social Security
         
    • Plan B members contribute:
      • Prior to July 1, 2017, Tier I Plan B members contributed 2% of their state salary on which Social Security taxes are withheld. As part of the SEBAC 2017 Agreement, contributions increased, please refer to the agreement in the link below for more information.
      • Prior to July 1, 2017, Tier I Plan B members contributed 5% of their state salary on which Social Security taxes are not withheld. As part of the SEBAC 2017 Agreement, contributions increased, please refer to the agreement in the link below for more information.
      • 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). http://www.ssa.gov/retire2/agereduction.htm
         
    • Plan C members contribute:
      • Prior to July 1, 2017, Tier I Plan B members contributed5% of their total state salary and participate in Social Security with no adjustments. As part of the SEBAC 2017 Agreement, contributions increased, please refer to the agreement in the link below for more information.

        SEBAC 2017 Agreement
         
  • The majority of Tier I members participate in Plan B. Plan A has been closed to new members since 1973.

 

 

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