SPEC Kit 320: Core Benefits · 27
6. Please briefly describe the criteria for employee eligibility to receive the full benefit amount (e.g.,
upon reaching a certain age, after a certain number of years of employment, etc.) N=39
30 years of qualifying employment (may include other state entities).
59 years old.
6 years of vested service and age 62 or 30 years of service.
65 years of age with a minimum of 5 years of service credit or 55 years of age with a minimum of 10 years of service
credit.
A complicated formula of age and years of service, amended in 2005 to be more stringent for future retirees and with
current employees in a grandfathered status.
After 5 years of service upon reaching 65 years of age if hired prior to July 1, 1990, or if hired after July 1, 1990, the
later of employee’s 65th birthday or 5 years of service.
Age 55 with two years of service in the pension plan to qualify.
Age 60 with 10 years vesting.
Age 60 with 25 years of vesting service or more. Age 62 with between 10 and 25 years of vesting service. Age 62 with
at least 5 years of actual state service.
Age 60 with three years of service, or 35 years of service regardless of age.
Age corresponds with a benefit rate from this group chart this factor is multiplied by years of creditable service times
consecutive highest three-year average rate of regular compensation to equal your retirement allowance. AGE GROUP
1 65 +2.5 64 2.4 63 2.3 62 2.2 61 2.1 60 2.0 59 1.9 58 1.8 57 1.7 56 1.6 55 1.5 The superannuating retirement
allowance of any member may not exceed 80% of your three-year average annual rate of regular compensation.
However, veterans are entitled to an extra $15.00 a year for each year (or fraction) of creditable service, up to a
maximum additional benefit of $300.00 per year. Veterans receive this even if their retirement allowance exceeds 80%
of their average annual rate of regular compensation. For example, under option A, a Group 1 employee, who is 65
years of age with 30 years of creditable service and whose consecutive high three year average earnings is $50,000.00
calculates as follows: 2.5 x 30 =75 (covert to decimal percentage) .75 X $50,000.00 =$37,500.00 yearly benefit/
$3,125.00 a month.
Benefit based on normal retirement date of age 65, however employee can take an actuarial unreduced pension at age
62. Prior to age 62, pension is reduced 1/2% per month for each month retirement predates age 62.
Completion of 30 years of creditable service regardless of age, completion of at least 10 years of creditable service and
attainment of age 60, or completion of at least 25 years of creditable service. If you retire under this provision, your
benefit will be permanently reduced by the lesser of one-twelfth of 7% for each month you are below age 60, or 7% for
each year or fraction of a year by which you have less than 30 years of creditable service.
Employees are eligible for “normal retirement” at age 65 or after with 5 years of service and will receive their full
pension without reduction for early retirement. Vesting with Pension Benefits: Participants in the plan “vest” after five
years of service. Vesting gives a participant the right to a pension at age 65 (or as early as age 55, when the sum of
age and years of service equals 75) even if he or she leaves university employment. Terminated vested M&P employees
are eligible to receive their pension in the form of a one-time lump sum payment if the present value of their account
balance is less than $18,000.
6. Please briefly describe the criteria for employee eligibility to receive the full benefit amount (e.g.,
upon reaching a certain age, after a certain number of years of employment, etc.) N=39
30 years of qualifying employment (may include other state entities).
59 years old.
6 years of vested service and age 62 or 30 years of service.
65 years of age with a minimum of 5 years of service credit or 55 years of age with a minimum of 10 years of service
credit.
A complicated formula of age and years of service, amended in 2005 to be more stringent for future retirees and with
current employees in a grandfathered status.
After 5 years of service upon reaching 65 years of age if hired prior to July 1, 1990, or if hired after July 1, 1990, the
later of employee’s 65th birthday or 5 years of service.
Age 55 with two years of service in the pension plan to qualify.
Age 60 with 10 years vesting.
Age 60 with 25 years of vesting service or more. Age 62 with between 10 and 25 years of vesting service. Age 62 with
at least 5 years of actual state service.
Age 60 with three years of service, or 35 years of service regardless of age.
Age corresponds with a benefit rate from this group chart this factor is multiplied by years of creditable service times
consecutive highest three-year average rate of regular compensation to equal your retirement allowance. AGE GROUP
1 65 +2.5 64 2.4 63 2.3 62 2.2 61 2.1 60 2.0 59 1.9 58 1.8 57 1.7 56 1.6 55 1.5 The superannuating retirement
allowance of any member may not exceed 80% of your three-year average annual rate of regular compensation.
However, veterans are entitled to an extra $15.00 a year for each year (or fraction) of creditable service, up to a
maximum additional benefit of $300.00 per year. Veterans receive this even if their retirement allowance exceeds 80%
of their average annual rate of regular compensation. For example, under option A, a Group 1 employee, who is 65
years of age with 30 years of creditable service and whose consecutive high three year average earnings is $50,000.00
calculates as follows: 2.5 x 30 =75 (covert to decimal percentage) .75 X $50,000.00 =$37,500.00 yearly benefit/
$3,125.00 a month.
Benefit based on normal retirement date of age 65, however employee can take an actuarial unreduced pension at age
62. Prior to age 62, pension is reduced 1/2% per month for each month retirement predates age 62.
Completion of 30 years of creditable service regardless of age, completion of at least 10 years of creditable service and
attainment of age 60, or completion of at least 25 years of creditable service. If you retire under this provision, your
benefit will be permanently reduced by the lesser of one-twelfth of 7% for each month you are below age 60, or 7% for
each year or fraction of a year by which you have less than 30 years of creditable service.
Employees are eligible for “normal retirement” at age 65 or after with 5 years of service and will receive their full
pension without reduction for early retirement. Vesting with Pension Benefits: Participants in the plan “vest” after five
years of service. Vesting gives a participant the right to a pension at age 65 (or as early as age 55, when the sum of
age and years of service equals 75) even if he or she leaves university employment. Terminated vested M&P employees
are eligible to receive their pension in the form of a one-time lump sum payment if the present value of their account
balance is less than $18,000.
