Retirement Eligibility
Two-Tiered System – 401(a), non-ERISA
| Tier I – Traditional & Portable Plan Members First Employed Before Jan. 1, 2011 | Tier II – Traditional & Portable Plan Members First Employed Jan. 1, 2011 or after | Tier I & Tier II Retirement Savings Plan | |
| Employee Contributions | 8% of pensionable earnings | 8% of pensionable earnings | 8% of pensionable earnings |
| Minimum Vesting | 5 years of service | 10 years of service | 5 years of service |
| Retirement Age Requirements | Age 62, with at least 5 years of service Age 55, with at least 8 years of service (age reduction of 0.5% for each month under age 60 at retirement may apply) At any age, with at least 30 years of service | Age 67, with at least 10 years of service Age 62, with reduction for age, with at least 10 years of service (age reduction of 0.5% for each month under age 67 at retirement will apply) | Age 62, with at least 5 years of service Age 55, with at least 8 years of service At any age, with at least 30 years of service Age reduction is not applicable to RSP. |
| Retirement Benefits | Greater of the benefits computed under SURS General Formula, Minimum Annuity calculation and Money Purchase calculation. (The Money Purchase calculation is not available to members who certified on or after 7/1/2005.) | Greater of the benefits computed under SURS General Formula and Minimum Annuity calculation. | Account established in member name. Member decides how to invest using a variety of investment options including the default option, SURS Lifetime Income Strategy (LIS). Future retirement benefits are based on account balance or the amount of income secured through the LIS at retirement time. |
| Pensionable Earnings/ Contribution Limits | IRS limits apply for members hired after 7/1/1996. FY2024 earnings limit is $330,000. FY2025 earnings limit is $345,000. | Limited to a maximum earnings of $123,489.18 for 2024 and $125,773.73 for 2025. Increases annually thereafter by the lesser of 3% or ½ the Consumer Price Index (CPI) change the preceding year. | IRS limits apply. FY2024 earnings limit is $330,000. FY2025 earnings limit is $345,000. Calendar year 2024 contribution limit is $69,000. |
| Final Average Earnings (FAE) | Average earnings during 4 highest consecutive academic years or the average of the last 48 months prior to termination (if applicable). | Average earnings during the 8 highest consecutive academic years of the last 10 or average earnings of the highest 96 consecutive months during the last 120 months of service. | Not applicable |
| FAE Limits | Limited to 20% year-over-year increases in earnings for years in the FAE period. | Limited to 20% year-over-year increases in earnings for years in the FAE period. | Not applicable |
| Retirement Benefit AAI (Automatic Annual Increase) | 3%, compounded annually | Lesser of 3% or ½ the CPI change. Increase is not compounded and is delayed until the later of Jan. 1 following age 67 or Jan. 1 following first anniversary of retirement. | No AAI. However, if you invest in the SURS LIS, you have the potential to benefit from market gains after retirement, which can increase your monthly withdrawal amount. |
| Survivor Benefits | Eligible Traditional Plan survivor receives minimum of 50% of a member’s earned retirement annuity. Portable Plan member benefits may be reduced to provide a benefit to a spouse or contingent annuitant. | Eligible Traditional Plan survivor receives minimum of 662/3% of a member’s earned retirement annuity. Portable Plan member benefits may be reduced to provide a benefit to a spouse or contingent annuitant. | You can choose to provide a survivor benefit. Your monthly retirement benefit will be reduced to cover the cost of providing a survivor benefit. |
| Survivor AAI | Survivor AAI 3%, compounded annually. | Traditional Plan increase is calculated using the lesser of 3% or ½ the CPI change. It is not compounded. Portable Plan is 3% compounded annually. | If a member retires with the SURS LIS and provides a 100% Joint and Survivor benefit, the survivor has the potential to benefit from market gains that could increase the monthly withdrawal amount. |
Important – Police/Firefighters may qualify for special contribution rates, eligibility requirements and retirement calculations. This chart is only a brief overview and should not be considered a substitute for the information in the SURS Member Guides or the provisions of the law set forth in Articles 1, 15 and 20 of the Illinois Pension Code.
Tier I – Traditional & Portable Plan Members First Employed Before Jan. 1, 2011 |
|
| Employee Contributions | 8% of pensionable earnings |
| Minimum Vesting | 5 years of service |
| Retirement Age Requirements | Age 62, with at least 5 years of service Age 55, with at least 8 years of service (age reduction of 0.5% for each month under age 60 at retirement may apply) At any age, with at least 30 years of service |
| Retirement Benefits | Greater of the benefits computed under SURS General Formula, Minimum Annuity calculation and Money Purchase calculation. (The Money Purchase calculation is not available to members who certified on or after 7/1/2005.) |
| Pensionable Earnings/ Contribution Limits | IRS limits apply for members hired after 7/1/1996. FY2024 earnings limit is $330,000. FY2025 earnings limit is $345,000. |
| Final Average Earnings (FAE) | Average earnings during 4 highest consecutive academic years or the average of the last 48 months prior to termination (if applicable). |
| FAE Limits | Limited to 20% year-over-year increases in earnings for years in the FAE period. |
| Retirement Benefit AAI (Automatic Annual Increase) | 3%, compounded annually |
| Survivor Benefits | Eligible Traditional Plan survivor receives minimum of 50% of a member’s earned retirement annuity. Portable Plan member benefits may be reduced to provide a benefit to a spouse or contingent annuitant. |
| Survivor AAI | Survivor AAI 3%, compounded annually. |
Tier II – Traditional & Portable Plan Members First Employed Jan. 1, 2011 or after |
|
| Employee Contributions | 8% of pensionable earnings |
| Minimum Vesting | 10 years of service |
| Retirement Age Requirements | Age 67, with at least 10 years of service Age 62, with reduction for age, with at least 10 years of service (age reduction of 0.5% for each month under age 67 at retirement will apply) |
| Retirement Benefits | Greater of the benefits computed under SURS General Formula and Minimum Annuity calculation. |
| Pensionable Earnings/ Contribution Limits | Limited to a maximum earnings of $123,489.18 for 2024 and $125,773.73 for 2025. Increases annually thereafter by the lesser of 3% or ½ the Consumer Price Index (CPI) change the preceding year. |
| Final Average Earnings (FAE) | Average earnings during the 8 highest consecutive academic years of the last 10 or average earnings of the highest 96 consecutive months during the last 120 months of service. |
| FAE Limits | Limited to 20% year-over-year increases in earnings for years in the FAE period. |
| Retirement Benefit AAI (Automatic Annual Increase) | Lesser of 3% or ½ the CPI change. Increase is not compounded and is delayed until the later of Jan. 1 following age 67 or Jan. 1 following first anniversary of retirement. |
| Survivor Benefits | Eligible Traditional Plan survivor receives minimum of 662/3% of a member’s earned retirement annuity. Portable Plan member benefits may be reduced to provide a benefit to a spouse or contingent annuitant. |
| Survivor AAI | Traditional Plan increase is calculated using the lesser of 3% or ½ the CPI change. It is not compounded. Portable Plan is 3% compounded annually. |
Tier I & Tier II Retirement Savings Plan |
|
| Employee Contributions | 8% of pensionable earnings |
| Minimum Vesting | 5 years of service |
| Retirement Age Requirements | Age 62, with at least 5 years of service Age 55, with at least 8 years of service At any age, with at least 30 years of service Age reduction is not applicable to RSP. |
| Retirement Benefits | Account established in member name. Member decides how to invest using a variety of investment options including the default option, SURS Lifetime Income Strategy (LIS). Future retirement benefits are based on account balance or the amount of income secured through the LIS at retirement time. |
| Pensionable Earnings/ Contribution Limits | IRS limits apply. FY2024 earnings limit is $330,000. FY2025 earnings limit is $345,000. Calendar year 2024 contribution limit is $69,000. |
| Final Average Earnings (FAE) | Not applicable |
| FAE Limits | Not applicable |
| Retirement Benefit AAI (Automatic Annual Increase) | No AAI. However, if you invest in the SURS LIS, you have the potential to benefit from market gains after retirement, which can increase your monthly withdrawal amount. |
| Survivor Benefits | You can choose to provide a survivor benefit. Your monthly retirement benefit will be reduced to cover the cost of providing a survivor benefit. |
| Survivor AAI | If a member retires with the SURS LIS and provides a 100% Joint and Survivor benefit, the survivor has the potential to benefit from market gains that could increase the monthly withdrawal amount. |
Important – Police/Firefighters may qualify for special contribution rates, eligibility requirements and retirement calculations. This chart is only a brief overview and should not be considered a substitute for the information in the SURS Member Guides or the provisions of the law set forth in Articles 1, 15 and 20 of the Illinois Pension Code.