Pension participants have received a letter regarding the changes to the Defined Benefit formula. Click here to see a copy of that letter.
Pension Participants 60 years or older, or 50 years old with 15 or more service years as of January 1, 2015: These changes will have no bearing on your future retirement benefits. Your benefits are grandfathered and you will continue under the current plan formula and policy in place.
At the April 2014 Board of Administration meeting the following restructure of the plan was approved:
|Current||As of January 1, 2015|
|Normal Retirement Age||65 (Early retirement may begin as early as age 60.)||67 (Early retirement may begin as early as age 62.)|
|Formula||1.85% (The final average compensation gets multiplied by this formula.)||1.50% (The career-based average compensation gets multiplied by this formula.)|
|Calculation Criteria||Final Average Compensation:This is determined by taking the income from the five highest consecutive years of employment.||Career-Based Average:The compensation amount used to multiply by the formula will be based on the average of the participants career compensation.|
Active participants who are at least 60 years old or are at least 50 years old with 15 or more years of service will be considered grandfathered in the current version of the plan. This means their pension benefit will not change.
Benefits earned through December 31, 2014, will be calculated using the current formula which is 1.85% multiplied by years of service, multiplied by monthly salary with average of 5 highest years.