Elected Officials Defined Contribution Retirement System (EODCRS)
Appointed/elected January 1, 2014 – present
EODCRS is a defined contribution retirement plan in which members will draw benefits from a 401(a) account upon retirement. These accounts are funded through member and employer contributions. Member contributions are made from pre-tax salary and 401(a) accounts are not taxed until funds are withdrawn. Under state law, employer contributions are immediately vested, meaning members have full ownership of their defined contribution account balances without a waiting period.
EODCRS-covered members and retirees can allocate contributions to investment options within their 401(a) account. These options include target date funds, mutual funds, index funds and bond funds.
The benefit available to plan members upon retirement is determined by both contributions and investment performance of the funds chosen by participants. Please note that defined contribution plan investors are responsible for choosing their investments and bear the risk of loss of assets caused by market volatility and conditions.
Elected Officials Retirement Plan (EORP)
Tier 1 – Members hired prior to December 31, 2011
Tier 2 – Members hired January 1, 2012 – December 31, 2013
EORP is a defined benefit retirement plan that distributes pension benefits that are dependent upon member salary, credited service, EORP membership tier, and, in some cases, member age.
Normal or early retirement pension benefit amounts for EORP retirees are determined by a statutory formula that includes credited service and members’ highest average salary. Credited service includes employment periods in which the member and employer are contributing to EORP, and any transferred or purchased credited service from other retirement plans. Periods of unpaid leave are not considered credited service and are not counted towards normal retirement benefits.
- Highest average salary is based on the last 10 years of service and…
- For Tier 1 on the highest average salary over 36 consecutive months
- For Tier 2 on the highest average salary over 60 consecutive months
- For members who do not have five consecutive years of credited service will have their average determined by their last consecutive period of employment with a plan employer immediately before retirement
Membership Tier 1
Normal Retirement
|
Age |
Credited Service |
Calculation |
|
Not a Factor |
20 years |
Average monthly salary x 0.04 (multiplier) x Credited service = Gross monthly pension**Not to exceed 80% of the average yearly salary |
|
62 |
10 years |
|
|
65 |
5 years |
Early Retirement
|
Age |
Credited Service |
Calculation |
|
None |
5 years |
Gross monthly pension based on normal retirement minus monthly reduction equals the gross monthly pension based on early retirement
*Not to exceed 80% of the average yearly salary |
Membership Tier 2
Normal Retirement
|
Age |
Credited Service |
Calculation |
|
62 |
10 years |
Average monthly salary x 0.03 (multiplier) x Credited service = Gross monthly pension**Not to exceed 75% of the average yearly salary |
|
65 |
5 years |
Retiring Tier 2 members who are married can choose from retirement benefit estimates for a full pension with a 50 percent benefit for surviving spouses or an actuarially reduced pension that provides surviving spouses with 75 percent of the member’s benefits.
Retirement benefit estimates
EODCRS members and retirees can check their 401(a) defined contribution account balances through their account or by contacting their Nationwide retirement specialist, visiting www.psprsdcplan.com or contact Nationwide Retirement Solutions by calling 1-855-297-8228 or emailing [email protected] for assistance.
EORP Tier 1 members may estimate their monthly retirement benefit payment by using the EORP Retirement Excel Spreadsheet Estimator located in the resources section of our Forms & Resources webpage.
EORP Tier 1 and 2 members are encouraged to contact PSPRS for consultation services to request benefit estimates, retirement packets, applications for disability or survivor benefits information.