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
|You may draw a lifetime benefit if you satisfy age and service requirements.
|You may defer receipt of your monthly benefit until you are age 55 or older.
|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
|Computation of Annual Benefit
|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.
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
|Survivor benefit under the 100% joint and survivor lifetime annuity, a term certain annuity or a refund.
|If no survivor benefit is payable, then an actuarial equivalent of survivor benefit.
Survivor — Retired Member
|Based on the selected option at the time of the member’s retirement.
Refund of Employee Contributions
|Member contributions and interest if applicable.