Tier 2 Pension Plan Information
Tier 2 is a "defined benefit" plan that provides pension benefits based upon final pay and years of service. This plan provides service, disability and survivor pension benefits as well as retiree health insurance subsidies to eligible sworn members and certain qualified survivors. When you participate in this plan, you do not contribute to or earn Social Security credit.
|How much do I contribute to the plan?||
As an active member of Tier 2, you contribute 7% of your pre-tax pay each pay period. Your contributions are automatically deducted from your paycheck. While you are an active member, your contributions will earn interest every six months (each June 30 and December 31).
Once you attain 30 years of service, you no longer contribute to the plan.
|How is my benefit determined?||Your benefit is based on a formula that takes into account your final rate of pay and years of service. Log on to see your personal information and review your accrued pension benefit.|
|How is my Service Pension calculated?||
Follow these steps to calculate your service pension:
|How is my benefit paid?||Your benefit is a guaranteed monthly payment for life and may allow you to provide continuing income to a qualified survivor.|
|What happens if I leave the Fire or Police Department before I can retire?||Your contributions and accrued interest will be refunded to you if you were a system member on July 1, 1982 and are not eligible to retire.|
|When am I eligible to retire?||
You are eligible to apply for a service pension, at any age, after completing 20 years of aggregate service as a sworn employee of the Fire or Police Department. Learn how to apply for a service pension.
|Will I receive cost of living adjustments (COLA)?||
Yes, you will receive cost of living adjustments (COLA) on your benefit. Review the Tier 2 COLA Overview.
|Am I eligible for disability benefits?||
If you are unable to work due to injury or illness, you may be eligible for a disability pension. Learn more about your disability benefits.
|What happens if I die?||