Tier Comparison

Bringing Tiers to your Eyes 

Employees who started after January 1, 2011, may recall that during your Retirement Fund intake session, Fund staff provided you with a brochure and explained to you what “Tier” you are in. A lot happens on the first day. As such, it may be helpful to all employees, old and new alike, to explain the difference between Tier 1 and Tier 2 Retirement Fund benefits. Refer to the table below for a comparison of the major differences: 

  Tier 1 Tier 2
Tier Membership  Became a member in the Fund or in one of certain reciprocal funds before 1/1/2011.  Became a member of the Fund on or after 1/1/2011.
Contribution Rate 12%, with provisions to decrease to 9% when the Fund is 90% funded.  9%
Minimum
Retirement
Requirements		 Age 50 if hired before 6/13/1997 or age 55 if hired after 6/13/1997 with a minimum of 10 years of service, discounted if less than 30 years of service.  Age 62 with a minimum of 10 years of service, discounted if less than 30 years of service.
Requirements for
Retirement without
Discount 
  • Age 60 with at least 5 years of service
  • Age 55 (or 50 if hired before 6/13/1997) with at least 30 years of service.
  • Age 67 with at least 10 years of service.
  • Age 62 with at least 30 years of service.
Early Retirement
Discount		  ½% per month for each full month under age 60 or per full month less than 30 years of service, whichever is less.  ½% per month for each full month under age 67 if less than 30 years of service.
Surviving Spouse
Annuity		  60% plus 1% per year of service to a maximum of 85% of the employee’s annuity at the time of death1,2,3  66 2/3% of the employee’s annuity at the time of death1
Final Average
Salary		  Average of the highest two years of the last 10 years of service.  Average of the highest eight years of the last 10 years of service.
Salary Cap
  • If entered before 1/1/1996 no salary cap.
  • If entered after 1/1/1996, $345,0004.
  Currently $125,773.734

 

1 Presumes that the spouse is eligible for an annuity.
2 If the member entered service on or after 1/1/1992, there may be a discount applied to the spouse’s annuity for age difference between the member and spouse.
3 If the member retired prior to 8/23/1989, the benefit is different.
4 This amount is determined annually. The amount represented is effective for 2024.

These are general statements. If you have any questions about how these provisions apply to your situation, contact the Retirement Fund.

  • Increase
  • Decrease
  • Reset