Under the SRPS program, the annuity portion of your benefit is equal to your accumulated contributions plus any interest they may have earned.
Average Final Compensation
Average of your years of compensation used in the retirement formula of your plan. For members of the Reformed Contributory Pension Benefit, the AFC is the average of their five highest consecutive earning years. The AFC for all other members is the average of their three highest consecutive earning years.
Employment service recognized for computing the amount of any benefit.
Defined Benefit Plan
Any retirement plan that is not an individual account plan. Under a defined benefit plan, there is a definite formula by which your benefit is calculated.
Defined Contribution Plan
Any retirement plan that provides for an individual account for each participant. Under a defined contribution plan, your benefits are based on contributions to your account and any interest gained or lost and contribution lost due to investment performance.
Early Service Retirement
A reduced benefit payable as early as age 60 for members of the Reformed Contributory Pension Benefit and age 55 for all other members. Member must have at least 15 years of eligibility service to qualify.
Employment service which determines when you are eligible to receive a benefit.
Federal Penalty Tax
A 10% penalty tax is charged on ORP distributions prior to age 59-1/2 unless the distribution was:
- paid to your beneficiary after your death
- due to disability
- part of a series of materially equal payments
- made following your separation from service following age 55
- made to an alternative payee pursuant to a qualified domestic relations order
Please consult your tax advisor for more information.
Normal Retirement Age
Reformed Contributory Pension Benefit
Retirement with an unreduced monthly benefit at a combined age and eligibility service of at least 90 years (or age 65 after 10 years of eligibility service.)
All other systems
Retirement with an unreduced monthly benefit at age 62 with at least five years of eligibility service (or at any age after 30 years of eligibility service.)
Social Security Integration
LevelThe average of the Social Security Wage Bases for the 35 years preceding your year of retirement. Integration level can be obtained by contacting the Social Security Administration at 1-800-772-1213 or www.ssa.gov.
Social Security Wage Base
The amount of your salary which is taxed for Social Security or Federal Insurance Contributions Act (FICA).
Entitlement to retirement benefits at a later date. A member of the Reformed Contributory Pension Benefit is vested after 10 years of eligibility service. members of all other systems are vested after five years of eligibility service.