|Benefit Multiplier/Maximum Benefit & Average Monthly Earnings
Effective December 16, 2016, the benefit formula multiplier for service earned after September 30, 2012 was increased from 3.00% to 3.25% and the maximum benefit percent was increased from 75.00% to 81.25%. Average monthly earnings during the highest four consecutive years out of the 10 years immediately preceding the determination. Earnings include all compensation excluding overtime, off-duty details, annual sick leave conversion payments, vacation payment incentives, and all end of career payouts (sick, vacation/annual, and compensatory time) up to 107.5% of base salary. Earnings cannot exceed the maximum amount allowed under Internal Revenue Code (IRC) section 401(a) (17).
|Cost of Living Adjustment
Retirees receive an automatic annual 2.50% cost-of-living adjustment beginning on the January 1st immediately following their retirement with respect to benefits earned prior to October 1, 2012 and an automatic annual 1.00% cost-of-living adjustment beginning on the January 1st that occurs at least five years after their retirement with respect to benefits earned after September 30, 2012. The cost-of-living adjustment is pro-rated for retirement less than one year. (Participants who had earned at least 20 years of Credited Service as of October 1, 2012 receive the 2.50% cost-of-living adjustment with respect to their entire benefit.).