Does the pension reform change the PERS employee pre-tax pension contribution rate?
Yes, the PERS pre-tax employee pension contribution rate will increase from 5.5% to 6.5% of the contractual base salary. The increase will become effective the first payroll in October 2011. The employee pre-tax pension contribution rate will have additional increases over a seven year period until the employee contribution rate is 7.5% of the base contractual salary.
Has the PERS pension formula changed as a result of the pension reform?
The law modified the retirement age and the pension formula for PERS members in Tier 5 (members enrolled in PERS on or after June 28, 2011). The retirement age and pension formulas have not been modified for the previous membership Tiers (Tiers 1, 2, 3 and 4)
What is the retirement age for Service (Normal) or Deferred retirement for PERS members in Tier 5 (employees enrolled in PERS on or after June 28, 2011)?
The retirement age for both a Service or Deferred retirement for Tier 5 members is 65. The retirement age for members enrolled in the PERS plan prior to June 28, 2011 has not changed.