Tier 2 Benefits apply to a police officer or firefighter who first becomes a participant in an Article 3 or Article 4 pension fund on or after January 1, 2011. This article will highlight Tier 2 benefits.
Tier II Benefits:
Service Retirement Benefits:
- 55 years old upon 10 years of service. 2.5% of “final average salary” for each year of service. Average monthly salary during the last 4 years of service.
(Highest 4 consecutive years of salary in the last 5 years of service, or Highest 8 consecutive years in the last 10 years, whichever is higher)
- Max pension is 75%
- Can receive a retirement pension after age 50 with a 6% decrease for each year receives payment prior to age 55. (reduced by one-half of 1% for each month that the police officer’s age is under age 55)
- COLA increases after age 60 (or January after been retired for 1 year whichever is later) based on originally granted pension. Increase is 1/2 of the annual increase in CPI no greater than 3%.
- The Maximum Pensionable Salary for 2024 is $138,093.50
Survivor Benefits:
- Service and Disability – Survivors get 66.7% of pension receiving at time of death.
- Active FF, Line-of-duty death – Survivor get 100% of salary attached to rank of deceased, no min amount of service.
- Active FF, Death not duty related – If less than 10 years of service refund of contributions to estate. If 10 years of creditable service, survivors entitled to 66.7% of pension entitled to at time of death.
- Survivors get COLA increase at age 60 based on 1/2 CPI but not greater that 3% (same at COLA for Tier II retirees)