Does the pension reform change the PFRS employee pre-tax pension contribution rate?
Yes, the PFRS pre-tax employee contribution will increase from 8.5% to 10% of salary. The increase will become effective the first payroll in October 2011.
Has the PFRS pension formula changed as a result of the pension reform?
The law modified the Special Retirement pension formula for members in Tier 3 (members enrolled in PFRS after June 28, 2011). The Special Retirement pension formula has not been modified for the previous membership Tiers (Tiers 1 and 2).
What are the PFRS tiers and the pension benefit associated with each tier?
The pension benefit varies based on the dates when a member was enrolled in the pension plan. Each tier has a date range which specifies the benefit available to the members within the tier. For a listing of the PFRS membership tiers visit PFRS Tiers.
What is the Special Retirement formula for PFRS members in Tier 3?
The Special Retirement is available to members at any age, who have at least 25 years of pension service credit. The Special Retirement formula for Tier 3 members is 60% of the member’s final compensation (average of any three fiscal years) for 25 years of pension service plus 1 percent of final compensation for each year from 26 to 30 years. Therefore, the maximum benefit for a Special retirement for Tier 3 members is 65% of final compensation.