Employees' Retirement System

Contributions to Employee Retirement System

Employee:

• Plans A & C:
  • 4% of salary up to the Social Security Taxable Wage Base (2023 = $160,200) PLUS
  • 5.333% of salary in excess of the Social Security Taxable Wage Base
  • 5.333% of salary

  Employee contributions earn 5% interest annually

  Employer:

  • Varies yearly, determined by amount required to fund the plan based on actuarial calculations.
  • As of July 1, 2022 - 28.88% / As of July 1, 2023 - 30.87%

  Types of Retirement Benefits

  Normal Service Retirement

  Eligibility:

  • All Plans:
    • Age 65 with five or more years of service
    • Rule of 80 (Age + Service = 80) Minimum age of 50
    • Rule of 85 (Age + Service = 85) Minimum age of 55

    Benefit Calculation:

    FAS (Final Average Salary) = average of member’s highest 78 consecutive pay periods (36 months) salary

    • Plan A and Plan C:
      • 1.8% x FAS x Years of Benefit Service x 1.03
      • 2.0% x FAS x Years of Benefit Service x 1.03
      • 1.0% x FAS x Years of Benefit Service x 1.03
      • 2.0% x FAS x Years of Benefit Service

      Early Service Retirement

      Eligibility:

      • Rule of 75 (Age + Service = 75) Minimum age = 50

      Benefit Calculation:

      • Same as Normal Service Retirement and dependent upon which plan the member was in, but reduced by a percentage based on age at the time of early retirement. No Pre-Social Security Benefit payable.

      Deferred Vested

      Eligibility:

      • Age 65 if the employee has 5 or more years of service and contributions remained in the system

      Benefit Calculation:

      • Same as Normal Service Retirement and dependent upon which plan the member was in.

      Ordinary Disability

      Eligibility:

      • At least five years of retirement eligible service. Disability is not job-related.

      Benefit Calculation:

      • 2.0% x FAS x Years of Benefit Service (Max of 30 years) x 1.03
      • No Pre-Social Security Benefit payable.

      Service-Connected Disability

      Eligibility:

      • Any amount of retirement eligible service qualifies. Disability must be job-related.

      Benefit Calculation:

      • 66-2/3% of FAS less payments from Workers' Compensation

      DROP (Deferred Retirement Option Program)

      Eligibility:

      • Same as Normal Service Retirement and dependent upon which plan the member was in.

      Survivor Benefits

      • Before Retirement
        • Either optional spouse's benefit equal to 50% of the employee's benefit as of the date of death or refund of contributions and interest.
        • Either optional Joint and Last Survivor benefit of 50%, 66-2/3%, 75%, or 100% of retiree's reduced benefit or refund of remaining employee contributions and interest.

        Minimum/Maximum Benefits:

        • Minimum: $300 annually.
        • Maximum: amount allowed under I.R.C. Section 415.