Special 20- and 25-Year Plans
For PFRS Tier 1, 2, 3, 5 and 6 Members
(Sections 384, 384-d and 384-e)
Tier 1, 2 and 3 Members
If you are a Tier 1 or 2 member, or a Tier 3 member covered by Article 11 benefits, you are not required to contribute toward your retirement benefits, but may elect to make voluntary annuity savings contributions to the Retirement System. These contributions, plus the interest they earn, will provide you with an annuity, in addition to your regular service retirement benefit, when you retire.
Tier 5 Members*
If you are a Tier 5 member, you are required to contribute 3 percent of your reportable earnings toward your retirement benefits until you retire or have 32 years of service credit, whichever occurs first. If you are covered by a retirement plan that does not provide additional benefits beyond 20 or 25 years, you are not required to contribute 3 percent of your reportable earnings beyond 20 or 25 years of credited service, depending on your plan coverage. These mandatory contributions are not annuity savings contributions and will not provide you with an annuity when you retire.
Tier 6 Members* 1
Tier 6 members are required to contribute a specific percentage of your reportable earnings (see chart below) until you retire, unless your plan limits creditable service to 20, 25 or 32 years. Contributions are not required after the maximum service credit allowed has been reached. During the first three years of membership, your contribution rate is based on your annual wage, as provided by your employer, on your Membership Application. After this three-year period, your contribution rate will be based on what you actually earned two years prior. For part-time employees, your contribution rate is based on your annualized wage. Contribution rates are set April 1 of each year. Regardless of whether you work on a full- or part-time basis, however, the amount of your contribution is determined by applying your contribution rate to your current gross reportable earnings. These mandatory contributions are not annuity savings contributions and will not provide you with an annuity when you retire.
|Annual Wage||Contribution Rate|
|$45,000 or less||3%|
|$45,000.01 to $55,000||3.5%|
|$55,000.01 to $75,000||4.5%|
|$75,000.01 to $100,000||5.75%|
|More than $100,000||6%|
*There may be some exceptions. For example, PFRS members covered by a collective bargaining agreement requiring the employer to offer a non-contributory plan that was in effect on January 9, 2010, and is still in effect on the date of membership, may not contribute.
1 Updated 11/14