| Type of Plan |
Defined Benefit Plan only. |
Two Components:
- Defined Contribution Plan (a personal investment portfolio).
- Defined Benefit Plan (pays 50% of what you receive under Plan 2).
|
| Defined Benefit Formula |
2% × Average Final Compensation × Service Credit Years. |
1% × Average Final Compensation × Service Credit Years. |
| Defined Contribution Component |
None. |
Based entirely on your contributions, the investment earnings and, if an annuity is the chosen payment option, the age at which payments begin. You will have a menu of options for investing your defined contribution portion and the opportunity (along with the accompanying risk) to receive the full market rate of return on your investments. |
| You are eligible to receive: |
- A full retirement benefit at age 65 if you have at least five years of service.
- An early retirement with no reduction at age 62 if you have 30 years of service.*
- A reduced benefit as early as age 55 if you have 20 years of service.
|
- A full retirement benefit from the defined benefit component at age 65 if you meet one of the following service requirements:
- At least 10 service credit years
- Five service credit years, including 12 service credit months that were earned after attaining age 44
- Five service credit years that were earned under Plan 2 before June 1, 2003 and transferred to PERS Plan 3.
- An early retirement with no reduction at age 62 if you have 30 years of service.*
- A reduced benefit as early as age 55 if you have 10 years of service.
|
| If you terminate and withdraw your contributions: |
You forfeit your right to a retirement benefit unless you return to eligible employment and re-establish service credit by paying back the withdrawn amount plus interest. |
You still have a right to a benefit under the defined benefit component (if you meet service eligibility requirements). |
| Contribution rate for member |
Adjusted periodically to reflect the projected needs of the retirement fund. The current TRS Plan 2 member contribution rate, as of September 2007, is 2.90%. |
Member selects from a variety of contribution rate options. Each option includes a 5% base rate and an additional rate ranging from 0% to 10% of your pay. Once selected, you can only change your contribution rate option when you change employers or during contribution rate flexibility periods each January as permitted by the Internal Revenue Service (IRS). |
| Inflation protection for inactive members— defined benefit component |
None |
If you have at least 20 or more years of service credit and separate from service, your pension benefit will be increased 0.25 percent per month, or approximately 3 percent for each year you delay receiving benefits until age 65. |
| Cost of Living Adjustment (COLA)— defined benefit component |
After receiving your benefit for one full year, a COLA of up to 3 percent will be applied each year on July 1. |
After receiving your benefit for one full year, a COLA of up to 3 percent will be applied each year on July 1. |
