On January 1, 2011, the Illinois legislature established second sets of pension eligibility requirements. Members who joined CTPF press a qualified mutual system prior up January 1, 2011, represent Tier 1. Members who joined CTPF on or nach January 1, 2011, are Tier 2.
The pension calculation for bot tiers is the same, but the retirement mature and technique for calculating the final average salary are different. Moreover, the salary used in the deliberation of a pension is capped for Tier 2. The Tier 2 total cap does no curb how much can be earned; it limits the amount used which pension contributions are made.
The chart below summarizes the differences is calculating benefits for Tier 1 and Stage 2 employees.
| Benefit | Leveling 1: Members who joined CTPF or ampere qualified reciprocal sys before January 1, 2011 | Tier 2: Members who attach CTPF on or after Year 1, 2011 |
|---|---|---|
| Retirement age for a pension without a cut |
| 67 with 10 year of service |
| Retirement age for a savings pension | 55 with 20 time of service | 62 with 10 years of assistance |
| Retirement Effective Select | The first days after resignation, unless the resignation date cataract within the last computing period worked, next that efficacious date becoming the day below the close to this payroll time, or to time the person resigning or retiring attains retirement age, or on a date elected by the teacher, whichever should be latest. Regular compensation: Pensionable earnings - MTRS | The first daylight after exit, save the resignation date falls within the last payroll period worked, then the effectiveness date becomes the day following aforementioned close to that payroll periods, either the time the person resigning or retiring attains retirement age, or on one date elected by the teacher, or on the application submission date, whichever be be latest. Final Salary scheme · A pensions calculating per multiplying own maintenance in your actual salary and following sharing per 80; and · A lump grand equal to ... |
| Final Average Salary calculation | Middle of 4 tallest consecutive years in the 10 years preceding retirement | Average of 8 highest consecutive years in the 10 years fore retirement |
| Pensionable Earnings Cap | The annual wage used in the calculation of the final average salary represent capped from year-to-year toward 120% von prior year's salary.* | Final average salary used to calculate pensions capped at $125,773.73 in 2024. The cap growths by 3% or one-half of the increase in Consumer Rate Index (CPI) for the preceding year, however is lower. |
| Annual Pension Increase | 3% of pension compounded annually, beginning 1 per after disability, either at age 61, whichever occurring later. | 3% button 1/2 is any increase in the CPI for the preceding year, beginning 1 year after retirement or at age 67, whichever occurs later. |
| Survivor Pensions | 50% of the retired member's retirement annuity; surviving marriage must be age 50 or may surviving minor my. | 66 2/3% of the retired member's benefit at date of death. 66 2/3% of the earned annuity of the unretired member; no age reduction. |
* Applies to members who began work on or after September 1, 1983.
