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PENSION BENEFIT ENHANCEMENTS
Effective Date: July 1, 2006
Creation of the Alternate Contributory Pension Selection provides a retroactive
enhanced benefit multiplier for service credit back to July 1, 1998 for
eligible members. Members who retired prior to July 1, 2006 are not impacted
by this legislation.
Eligible Members
Active members as of June 30, 2006 of the Employees' and Teachers' Pension system or the bifurcated plan of the Employees' and Teachers' Retirement System who meet one of the following criteria:
State employees (automatic
participation),
Teacher members of participating Boards of Education, Libraries, and Community
Colleges (automatic participation), and
Participating Governmental Unit employees only if the employer elects
to join the Alternate Contributory Pension Selection between July 1, 2006
and June 30, 2007.
Excluded from the Alternate Contributory Pension Selection are: (1) employees of withdrawn municipalities and (2) anyone who transferred from the Employees' or Teachers' Retirement System into the pension system on or after April 1, 1998.
Benefit Enhancement
Formula remains 1.2% (or former
non-contributory formula of .8%/1.5%, if greater) of average final compensation
times service credit to June 30, 1998
1.8% (replaces the former 1.4%) of average final compensation times service
credit from July 1, 1998 forward
Employee Contribution Rate
3% of the member's earnable
compensation from July 1, 2006 to June 30, 2007;
4% of the member's earnable compensation from July 1, 2007 to June 30,
2008; and
5% of the member's earnable compensation from July 1, 2008 forward.
Additional Information can be found in the: