Money Purchase Factor Changes – Should I Retire?
Special note: The deadline for this has passed unless the retirement date has been backdated to 7/1/25 or before. Learn more about backdating here.
When you retire depends upon your own personal situation and goals. If you are eligible, or nearly eligible for retirement, you may be wondering if you should retire before the new Money Purchase factor changes go into effect on July 2, 2025. Below are a few things for you to consider when making your decision.
Begin by asking yourself:
What is my plan choice?
Retirement Savings Plan (RSP) – For RSP members, the factor changes do not impact SURS retirement benefits.
Traditional or Portable Plans – Under the Traditional and Portable Plans some SURS retirement benefit amounts may be impacted by the factor changes.
When did my SURS participation begin?
On or After 7/1/2005 – For those whose participation began on or after 7/1/2005, the factor changes do not impact SURS retirement benefits because the Money Purchase calculation is not an available calculation method.
Prior to 7/1/2005 – For those whose participation began prior to 7/1/2005, some members may be impacted by the factor changes.
Am I eligible to retire within the next three years?
No – You would not be impacted by the current factor changes. Benefits calculated three or more years from now will be computed
based upon the factors in place on that date. SURS is required to reevaluate the factors at least every three years, based on changing market conditions, demographic assumptions and current economic environment.
Yes – SURS encourages you to learn more about how the factor changes may impact your future benefit. You may do this by:
- Using the Benefit Estimator. You may access this by logging on to the SURS Member Website.
- Requesting a counseling appointment. You may initiate this process by logging on to the SURS Member Website and clicking the Retirement Counseling Link, or by contacting SURS at 800-275-7877.
Benefit Amounts
SURS calculates retirement under all eligible calculation methods. Member’s annuity is based on the calculation providing the highest benefit.
Keep in mind that even small changes in a member’s pay or employment situation may change which benefit is ultimately the highest.
Highest Using Money Purchase – This calculation method is impacted by the Money Purchase factors, which are used to annuitize
retirement contributions over member’s projected life expectancy.
Highest Under Another Calculation Type – Money Purchase factor changes have no impact on calculation methods other than the Money Purchase.