December 1, 2010

Pension Code Changes Affect New Employees

CHANGES TO to the State pension code increase the minimum vesting service years and retirement age for University employees hired after Jan. 1, 2011.

SENATE BILL 1946, signed into law last April, makes no changes to pension benefits for current employees or annuitants.  

CHANGES WILL affect new employees, those who move to a State Universities Retirement System-eligible position from a non-SURS-eligible position after Jan. 1, and visa holders who establish residency after Jan. 1.

THE LAW modifies the SURS traditional and portable plans, but the self-managed plan remains unchanged.

FOR NEW employees, minimum vesting rises from five to ten years of service. The “normal retirement age” increases to 67 for employees with at least ten years of service.

FOR CURRENT employees, retirement age is 62 with at least five years of service, 60 with at least eight years of service, or any age with 30 years of service.

EARLY RETIREMENT age for new employees rises to 62 with at least ten years of service, up from age 55 with eight years of service.

THE FINAL rate of earnings for employees affected by the changes will be calculated by the average earnings of the employee’s highest-paid eight consecutive years during the last ten years of service.

FOR MORE information, call SURS at 800-275-7877.

--Christy Levy, UIC News,

No comments:

Post a Comment