TIER 1 EMPLOYEES
All full-time employees are eligible, and required, to participate in the State Retirement Program. For employees hired prior to January 1, 2013, seven and a half percent of the employee's salary is deducted each month for retirement and all contributions belong to the employee.
Ten years of creditable service are required for an employee to become "vested" or eligible for benefits. Persons terminating their employment with less than 10 years of service must withdraw their retirement funds.
A person hired prior to January 1, 2013 may retire after 25 years of service or at the age of 60 (if vested) and may use accumulated sick leave in determining the amount of creditable service. Retirement benefits will be calculated on the annual salary of the highest 3 of the last 10 years of service.
TIER 2 EMPLOYEES
Employees hired January 1, 2013, or later, will pay six percent to the retirement system and their retirement benefits will be calculated at a lower percentage than current employees. Benefits will be calculated on the annual salary of the highest 3 of the last 5 years of service.
The retirement age requirement for employees hired January 1, 2013, or later will be 62 (if vested) or 30 years of service. An employee may not use accumulated sick leave in determining the amount of creditable service.