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Special 20- and 25-Year Plans

For PFRS Tier 1, 2, 3, 5 and 6 Members

(Sections 384, 384-d and 384-e)

Contributing Toward Your Retirement

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 you 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 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.

There will 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.

Tier 6 Members

As a Tier 6 member, you are required to contribute 3 percent of your reportable earnings toward your retirement benefits during fiscal year 2012-13. Beginning April 1, 2013, you are required to contribute a specific percentage of your annual salary, as shown below, until you retire or have 32 years of service credit, whichever occurs first. 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 will 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.