| Annuity |
Under the SRPS program, the annuity portion of your benefit is equal to
your accumulated contributions plus any interest they may have earned.
|
| Creditable Service |
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.
|
| Eligibility Service |
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
un less the distribution was: 1) paid to your beneficiary after your
death, 2) due to disability, 3) part of a series of materially equal
payments, 4) made following your separation from service following age 55,
or 5) made to an alternative payee pursuant to a qualified domestic
relations order. Please consult your tax advisor for more information.
|
| Final Average Salary |
The average of your three highest consecutive years of
compensation for members of the Employee or Teachers Pension System, or the average
of the highest of any three years of compensation for members of the
Retirement System.
|
| Normal Retirement Age |
Your normal retirement age is:
- age 62 with at least five years of eligibility service,
- age 63 with four years of eligibility service,
- age 64 with three years of eligibility service,
- age 65 or older with two years of eligibility service, or
- any age with 30 years of eligibility service.
|
| Social Security Integration
Level |
The 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). |
| Vested |
Vesting means you are entitled to benefit
payments. Under the SRPS, you are 100% vested after five years of
eligibility service payable at age 62 or reduced payments as early as age
55 if you have 15 or more years of eligibility service. Under the ORP, you
are immediately 100% vested in the State's contributions, your pre-tax
contributions and any investment earnings accumulated in your
account. |
