SURS DEFINED BENEFIT PLANS - TIER DESCRIPTIONS
Tier 1 — Members First Employed Prior to Jan. 1, 2011
Employee
Contributions
Pensionable
Earnings
(earnings/contribution
limits)
Retirement Vesting
& Age
Requirements
(with and without
reduction for age )
Final Rate
of Earnings
(FRE)
Retirement Benefit
Automatic Annual
Increase
Traditional and Portable Plans
Current Statute
Traditional and Portable Plans
As Modified by PA 98-599
Tier 2
Traditional and Portable Plans
Members First Employed On or After Jan. 1, 2011
Through June 30, 2014: 8% of pensionable
earnings (9.5% for police & firefighters)
Effective July 1, 2014: 7% of pensionable earnings
(8.5 % for police & firefighters)
8% of pensionable earnings
(9.5% for police & firefighters)
Only IRS limits apply prior to July 1, 2014.
Effective July 1, 2014: fiscal year earnings limited to the
greater of the Tier 2 earnings limitation (e.g. $110,631 for
Fiscal Year 2015); or the member’s annualized June 2014 rate
of earnings. However, for those under existing collective
bargaining agreements or contracts extending beyond June
2014, the limit is based on the Tier 2 limit and annualized rate
in effect at expiration and applied at expiration.
Contributions are only allowed on the first
$110,631 of earnings for Fiscal Year 2015. This
limit increases annually by the lesser of 3% or
one-half of the change in the Consumer Price
Index (CPI-u) for the preceding year. IRS
limitations may also apply.
Age 55 with at least 8 years of service —
reduced 0.5% for each month under age 60
Age 62 with at least 5 years — no age reduction
Age 60 with at least 8 years — no age reduction
At any age with at least 30 years — no age reduction
Age 50 with at least 25 years police/fire service
However, for retirement on or after July 1, 2014, for members
age 45 or younger as of June 1, 2014, between 4 months and
5 years is added to each age condition.
Age 62 with at least 10 years of service —
reduced 0.5% for each month under age 67
Age 67 with at least 10 years of service —
no age reduction
Average pensionable earnings during 4 highest consecutive
academic years, or average of the last 48 months prior to
termination (if applicable). Limited to 20% year-over-year
earnings increases for years in the FRE period.
Average pensionable earnings during 8 highest
consecutive academic years of last 10, or average of
high consecutive 96 months during last 120 (if
applicable). Limited to 20% year-over-year earnings
increases for FRE period years.
Age 55 with at least 8 years of service —
reduced 0.5% for each month under age 60
Age 62 with at least 5 years — no age reduction
Age 60 with at least 8 years — no age reduction
At any age with at least 30 years — no reduction
Age 50 with at least 25 years police/fire service
Average pensionable earnings during 4 highest
consecutive academic years, or average of the
last 48 months prior to termination (if
applicable). Limited to 20% year-over-year
earnings increases for years in the FRE period.
3%, compounded annually
(AAI)
Effective Jan, 1, 2015: 3% of the lesser of total annuity
payable at the time of the increase; or $1,000 multiplied by
the years of creditable service on which the annuity was
based. (The $1,000 multiplier will be increased for inflation,
in subsequent years.) For annuities beginning July 1, 2014,
or later, AAI will be payable based upon member age as of
June 1, 2014, as follows:
nd
Age 50 or over – skip 2 year of AAI
nd th
th
Age 47 up to 50 – skip 2 , 4 , & 6 years
nd th th
th
Age 44 up to age 47 – skip 2 , 4 , 6 & 8 years
nd th th th
th
Age 43 and under – skip 2 , 4 , 6 , 8 & 10 years
The lesser of 3% or one-half of the change in the
Consumer Price Index (CPI-u).
The increase is not compounded.
Survivor Benefits
Minimum of 50% of member’s earned
retirement annuity for Traditional Plan. Portable
Plan member benefits may be reduced to
provide survivor benefits.
Minimum of 50% of member’s earned retirement annuity for
Traditional Plan. Portable Plan member benefits may be
reduced to provide survivor benefits.
66 2/3% of member's earned retirement annuity
Survivor Benefit AAI
3%, compounded annually
3%, compounded annually
Lesser of 3% or one-half of the change in the
CPI-u. The increase is not compounded.
Updated 06/3/2014
On May 14, 2014, the Illinois Circuit Court granted a temporary restraining order and a preliminary injunction stopping implementation of Public Act 98-599, the pension reform law passed Dec. 5, 2013. In accordance with the order,
SURS will continue administering contributions and benefits as the law existed prior to amendment by P.A. 98-599 until otherwise ordered by the court.