For individuals employed or reemployed on or after July 1, 1978, with SPPS or SPC, or those who elected to convert to the Coordinated Plan from the Basic Plan.
Your benefit amount is not based on the amount of money you or your employer have contributed.
The defined benefit is calculated using the following factors:
- Final Average Salary (FAS) – the average of the highest five successive years of salary.
- Years of Service (YOS) – allowable retirement service credit earned while contributing to the SPTRFA.
- Percentage Multiplier
- Retirement Age or Age at which benefit is drawn
Your eligibility for a monthly benefit occurs when you are:
- Age 55 with three years of service
- Any age with 30 years of service
Your first date of employment determines your benefit formula method for either Tier 1 (Rule of 90 qualified) or Tier 2.
| EXPLAINING DIFFERENT TYPES MEMBER BENEFITS | DESCRIPTION |
| Retirement Benefit | You may draw a lifetime benefit if you satisfy age and service requirements. |
| Deferred Retirement | You may defer receipt of your monthly benefit until you are age 55 or older. |
| Survivor Benefits | In the event of your death, there may be a survivor benefit payable. |
| Refund of Contributions | If you resign from SPPS or SPC and have not yet begun to draw a benefit, you may elect a refund of your employee contributions, plus interest if applicable. A refund of contributions and service credit surrenders all rights to future lifetime benefits from the SPTRFA. |
Deferred Retirement – Waiting to draw pension benefit at a later date
| Normal Benefit | Minimum Age | Minimum Service | Computation of Annual Benefit |
| 55 | 3 | Annual benefit (see above). Any age with 30 years of service: Augmented from termination, per Minn. State Stat. § 354A.37, to the effective date of retirement. |
|
| Any Age | 30 |
Formula Key: FAS: Final Average Salary, YOS: Years of Service, Percentage Multiplier: 1.2%/1.4% and/or 1.7%/1.9%
Survivor — Active Member
| Normal Benefit | Minimum Service | Benefit Details |
| Surviving Spouse | 3 | Survivor benefit under the 100% joint and survivor lifetime annuity, a term certain annuity or a refund. |
| Dependent Children | 3 | If no survivor benefit is payable, then an actuarial equivalent of survivor benefit. |
Survivor — Retired Member
| Normal Benefit | Minimum Service | Benefit Details |
| Surviving Spouse | N/A | Based on the selected option at the time of the member’s retirement. |
Refund of Employee Contributions
| Normal Benefit | Minimum Service | Benefit Details |
| Forfeited | None | Member contributions and interest if applicable. |