SURS Actuarial Assumptions and Benefit Provisions Used in Tier 1 Calculations
| Tier I – Traditional Plan | Tier I – Portable Plan | RSP* | |
| Defined Benefit (DB) Plans | |||
| Benefit Multiplier | 2.20% | 2.20% | NA |
| Final Average Period | 4 Years | 4 Years | NA |
| Maximum Benefit | 80% of FAC | 80% of FAC | NA |
| Employee Contribution | 8.00% | 8.00% | NA |
| Interest Crediting Rate – Pre-retirement/Termination | 4.50% | 6.50% | NA |
| Annuitization Interest Rate for Lump Sums | 4.00% | 4.00% | NA |
| Defined Contribution (DC) Plan | |||
| Employee Contribution | NA | NA | 8.00% |
| Employer Contribution** | NA | NA | 7.60% |
| Assumed Return – Pre-retirement/Termination | NA | NA | 6.00% |
| Annuitization Interest Rate for Lump Sums | NA | NA | 4.00% |
| Mortality Assumption | Same as Valuation, unisex mortality 45%/55% male/female, year of birth for generational mortality based on age in 2025 | ||
| Benefit Commencement Age* | 30 Years, 60/8, 62/5 | 30 Years, 60/8, 62/5 | 30 Years, 60/8, 62/5 |
| COLA | 3.000% | Same as Traditional Plan when converting lump sums in the RSP to a monthly benefit for the purpose of comparing to the Traditional Plan benefit. | |
| Joint and Survivor Percentage | 50.00% | ||
| Survivor Age | Same as member | ||
| Pay Assumptions | |||
| Member Pay Increase Assumption | Same as Valuation ‐ 15.00% in first two years (13.00% if age 50+) graded down to 3.50% at 34 YOS (3.15% if age 50+) for employees in Academic positions | ||
| FY 2026 Pay Cap | $350,000 | $350,000 | $350,000 |
| Pay Cap Increase Assumption | 3.150% | 3.150% | 3.150% |
*Benefits are assumed to begin at the later of the assumed benefit commencement age and age at termination/retirement.
**0.00% of pay from 7.60% RSP employer contribution used to fund disability benefits.
Because of the higher assumed interest crediting rate/rate of investment return, the Portable Plan (lump sum) is projected to provide a higher benefit than the RSP for members whose pay is under the pay cap. Members must elect an annuity in order to receive retiree healthcare. If an annuity is elected from the Portable Plan, the Traditional Plan and the Portable Plan will provide the same benefit amount. However, the Traditional Plan will provide a 50% J&S benefit for married participants and a refund of survivor contributions for unmarried participants. In most cases, the RSP is projected to provide higher benefits to Tier II members whose pay is higher than the Tier II pay cap.
If the Portable Plan is shown as the highest benefit, this assumes a Portable lump sum is taken and annuitized outside of the Plan (based on the assumptions shown, which are the same assumptions used for annuitization of the RSP balance). RSP members may annuitize with a SURS provider which will entitle them to retiree healthcare, whereas a Portable Plan member may not annuitize with a SURS provider and receive retiree healthcare. The value of retiree healthcare is not included in this analysis.