a. Tier 1 All Plans
Tier 1 pensions are increased automatically on January 1 of each year. The amount of the increase is 3% of the original amount. (The first year is prorated; the first increase will be less than 3% unless the effective date of the retirement is January 1.) Note: With the optional pension, the 3% increase is also reduced at age 62.
Example:
Retirement date: January 1
|
Original Monthly Amount |
Year |
|||||
|
1st |
2nd |
3rd |
5th |
10th |
15th |
|
|
$400 |
$400 |
$412 |
$424 |
$448 |
$508 |
$568 |
|
$600 |
600 |
618 |
636 |
672 |
762 |
852 |
|
$800 |
800 |
824 |
848 |
896 |
1,016 |
1,136 |
|
$1,000 |
1,000 |
1,030 |
1,060 |
1,120 |
1,270 |
1,420 |
|
$1,500 |
1,500 |
1,545 |
1,590 |
1,680 |
1,905 |
2,130 |
b. Tier 2 Regular Plan, SLEP, and ECO
Tier 2 Regular and ECO pensions are increased on January 1 after the member reaches age 67 or receives 12 months of pension payments, whichever occurs later.
If a Regular Tier 2 member or ECO Tier 2 member retires under age 67, he or she will receive the annual increase the January 1 following the date he or she reaches age 67, or has received 12 months of pension payments whichever is later. Thereafter, the pension will be increased annually each January 1.
If a SLEP Tier 2 member retires under age 60, he or she will receive the annual increases the January 1 following the year the member reaches age 60 or receives 12 months of payments, whichever is later. Thereafter, the pension will be increased annually each January 1.
The increase, which is not compounded, is the lower of 3% or one-half of the increase in the Consumer Price Index Urban (CPI-U) for the preceding 12 months as of September, of the original amount. If the CPI-U decreases or is zero, no increase is paid.