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PRFS ENROLLMENT BY MEMBERSHIP TIER

PENSIONABLE SALARY LIMITS

( As of June 28, 2011)

TIER 1

(Enrolled on or before
May21, 2010)

TIER 2

(Enrolled after May 21, 2010 andon or before June 28, 2011)

 

TIER 3

(Enrolled after June 28, 2011)

The PFRS contribution rate for Tier 1 members enrolled on or before May 21, 2010, is applied to the full pensionable salary up to the “federal pensionable maximum.”* The PFRScontribution rate for Tier 2 members enrolled after May 21, 2010, is applied to the pensionable salary up to a compensation limit based on the annual maximum wage for Social Security deductions ($106,800 for 2010 and 2011).

Tier 2 members who earn in excess of the annual compensation limit will be enrolled in the Defined Contribution Retirement Program (DCRP) in addition to the PFRS. A contribution of 5.5 percent of the salary in excess of the limit (plus three percent from the employer) is forwarded to a DCR account.The PFRS contribution rate for Tier 3  members enrolled after June 27, 2011, is applied to the pensionable salary up to a compensation limit based on the annual maximum wage for Social Security deductions ($106,800 for 2010 and 2011).

Tier 3 members who earn in excess of the annual compensation limit will be enrolled in the Defined Contribution Retirement Program
(DCRP) in addition to the PFRS. A contribution of 5.5 percent of the salary in excess of the limit (plus three percent from the employer) is forwarded to a DCRP account.

*Federal Pensionable Maximum – Since the PFRS is a qualified pension plan under the provisions of the Internal Revenue Code, Section 401(a)(17), the current federal ceiling on pensionable compensation ($245,00 for 2010 and 2011) applies to the base salaries of PFRS members.

 TIER 1

(Enrolled on or before May 21, 2010)

TIER 2

(Enrolled after May 21, 2010 and on or before June 28, 2011)

TIER 3

(Enrolled after June 28, 2011)


SERVICE   RETIREMENT

Service Retirement eligibility falls into two categories:

• A member in service and age 55 or older may retire without any required minimum years of service.

• A member with at least 20 years of service may retire at any age provided the member was enrolled in the PFRS as of January 18, 2000.


The Tier 1 calculations for a Service Retirement are:

• Less than 20 years of service credit, the Annual Benefit equals 2% of Final Compensation for each year of service.

• At least 20 years but less than 25 years of service credit, the Annual Benefit equals 50 percent of Final Compensation.

• If age 65 (mandatory retirement age) with 20 or more years of service credit, the Annual Benefit equals 50% of Final Compensation,
plus 3% of Final Compensation for each year of service over 20, up to 25 years, if enrolled in the PFRS as of January 18, 2000.

• At least 30 years of service credit, the Annual Benefit equals 2% per year of average Final Compensation for the first 30 years of service, plus an additional 1% of average Final Compensation for each year of service credit over 30 yearsService Retirement eligibility for Tier 2 members is:

• A member in service and age 55 or older may retire without any required minimum years of service.


The Tier 2 calculations for a Service Retirement are:

• Less than 20 years of service credit, the Annual Benefit equals 2% of Final Compensation for each year of service.

• At least 20 years but less than 25 years of service credit, the Annual Benefit equals 50% of Final Compensation.

• At least 30 years of service credit, the Annual Benefit equals 2% per year of average Final Compensation for the first 30 years of service, plus an additional 1% of average Final Compensation for each year of service credit over 30 years.Service Retirement eligibility for Tier 3 members is:

• A member in service and age 55 or older may retire without any required minimum years of service.

The Tier 3 calculations for a Service Retirement are:

• Less than 20 years of service credit, the Annual Benefit equals 2% of Final Compensation for each year of service.

• At least 20 years but less than 25 years of service credit, the Annual Benefit equals 50% of Final Compensation.

• At least 30 years of service credit, the Annual Benefit equals 2% per year of average Final Compensation for the first 30 years of service, plus an additional 1% of average Final Compensation for each year of service credit over 30 years

Tier 1 — Final Compensation means the salary upon which pension contributions were based in the last 12 months of creditable service preceding retirement.

Tier 2 and Tier 3 — Final Compensation means the average salary upon which pension contributions were based for any three fiscal years of membership preceding retirement that provides the largest possible benefit possible. 

 

TIER 1

(Enrolled on or before
May 21, 2010)

TIER 2

(Enrolled after May 21, 2010 and on or before June 28, 2011)

TIER 3

(Enrolled after June 28, 2011)

DEFERRED

RETIREMENT

Available to PFRS members with at least 10 years of service credit who are not yet 55 years of age when they terminate employment

The Deferred Retirement is effective on the first of the month after attaining age 55.

The Annual Benefit for a Deferred Retirement equals 2% of Final Compensation for each year of service.

Available to PFRS members with at least 10 years of service credit who are not yet 55 years of age when they terminate employment

The Deferred Retirement is effective on the first of the month after attaining age 55.

The Annual Benefit for a Deferred Retirement equals 2% of Final Compensation for each year of service.

Available to PFRS members with at least 10 years of service credit who are not yet 55 years of age when they terminate employment.

The Deferred Retirement is effective on the first of the month after attaining age 55.

The Annual Benefit for a Deferred Retirement equals 2% of Final Compensation for each year of service.


SPECIAL
RETIREMENT

Available to Tier 1 members at any age, who have at least 25 years of service credit in the PFRS.

The Tier 1 Annual Benefit for a Special

Retirement equals 65% of Final

Compensation plus 1 percent for each year of creditable service over 25 years but not to exceed 30 years.

The maximum allowance is 70% of Final Compensation.Available to Tier 2 members at any age, who have at least 25 years of service credit in the PFRS.

The Tier 2 Annual Benefit for a Special

Retirement equals 65% of Final

Compensation plus 1% for each year of creditable service over 25 years but not to exceed 30 years.

The maximum allowance is therefore 70% of Final Compensation.

Available to Tier 3 members at any age, who have at least 25 years of service credit in the PFRS.

The Tier 3 Annual Benefit for a Special

Retirement equals  60% of Final

Compensation plus 1% for each year of creditable service over 25 years but not to exceed 30 years.

The maximum allowance is therefore 65% of Final Compensation 

Tier 1 — Final Compensation means the salary upon which pension contributions were based in the last 12 months of creditable service preceding retirement.

Tier 2 and Tier 3 — Final Compensation means the average salary upon which pension contributions were based for any three fiscal years of membership preceding retirement that provides the largest possible benefit possible.

 

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