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What is employee deferral

what is employee deferral


The PERS - DBRP provides retirement, disability and death benefits to the State of Montana, the university system, local governments and certain school district employees. In a defined benefit plan, both the amount you contribute and your future benefit is known. Your benefit will be calculated using a formula based on your salary and years of service. Click here for a more in-depth look at the PERS Defined Benefit Retirement Plan.

If you were hired before July 1, 2011, please click here for a summary of benefits.

Membership Service Factor (see below) x years of Service Credit x HAC

1.5% - If you have more than 5 years and less than 10 years of membership service.

1.7857% - If you have less than 30 years of membership service.

2% - If you have 30 years or more of membership service.

Highest Average Compensation (HAC)*: Highest

consecutive 60 months of gross salary.

Required age and years of service to be eligible for a benefit

Full service retirement :

  • Age 70 regardless of years of service or in active service
  • Age 65 with 5 years of membership service

Early retirement: Age 55 with 5 years of service - actuarially reduced

Vesting: 5 years of membership service

Guaranteed Annual Benefit Adjustment (GABA): 2013 GABA legislation is currently being challenged in state district court. Please click here for the latest information.

* HAC Capped: There is now a 110% cap on compensation considered as part of a member's highest average compensation. This applies to members of all systems who are hired on or after July 1, 2013. Also, bonuses have been removed from the definition of compensation for all retirement systems effective for bonuses paid on or after July 1, 2013.

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