As set forth in Utah Code Title 49, a person entering full-time employment with a participating employer on or after July 1, 2011, must make an election to participate in either the Tier 2 Hybrid Retirement System or the Tier 2 Defined Contribution (DC) Plan, within one year of their employment date. The election made is irrevocable. If no election is made, the employee automatically becomes a member of the Tier 2 Hybrid Retirement System.
|
|
Public Employees Contributory Retirement System
(Hybrid System) |
Public Employees Contributory Retirement System
(DC Plan) |
Public Safety/Firefighters Contributory Retirement System
(Hybrid System) |
Public Safety/Firefighters Contributory Retirement System
(DC Plan) |
|
Qualifications (Years / Age) |
35 yrs any age 20 yrs age 601 10 yrs age 621 4 yrs age 65 |
Members will have access to the full value of their vested account balance when they leave employment, regardless of age, provided they have 4 yrs of eligible employment. |
25 yrs any age 20 yrs age 601 10 yrs age 621 4 yrs age 65 |
Members will have access to the full value of their vested account balance when they leave employment, regardless of age, provided they have 4 yrs of eligible employment. |
|
Formula |
1.5 % per year of service credit.
401(k) contribution
(Equal to 10% minus the Hybrid DB Plan Rate and is vested after 4 years of accrued service.) |
Employer contributes 10% to member 401(k) plan.
Benefit is not based on a fixed formula. |
Before July 1, 2020: 1.5 % per year of service credit. 401(k) contribution
After July 1, 2020: 2.0 % per year of service credit.
(Equal to 14% minus the Hybrid DB Plan Rate and is vested after 4 years of accrued service.) |
Employer contributes 14% to member 401(k) plan.
Benefit is not based on a fixed formula. |
|
Final Average Salary |
Highest 5 yrs |
Not applicable |
Highest 5 yrs |
Not applicable |
|
Cost-of-Living (Max) |
2.5%2 |
None |
2.5%2 |
None |
|
Continuing Monthly Spousal Benefits |
Option 1– None Option 2– None, refund of unused contributions Option 3– Same monthly amount Option 4– ½ monthly amount Option 5– Same monthly amount3 Option 6– ½ monthly amount3 |
None
Any remaining vested funds in a member’s 401(k) plan will be paid to the member’s beneficiary(ies). |
Option 1– None Option 2– None, refund of unused contributions Option 3– Same monthly amount Option 4– ½ monthly amount Option 5– Same monthly amount3 Option 6– ½ monthly amount3 |
None
Any remaining vested funds in member’s 401(k) plan will be paid to the member’s beneficiary(ies). |
1. Actuarial reduction.
2. Eligible after one year; percentage increase based on original benefit and change in CPI.
3. If the member’s spouse dies before the member, the benefit reverts to the amount payable under Option 1.