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Update on Tier II/IIA Grandfathering Retirement Age

To keep our defined benefit plans secure and healthy, SEBAC’s 2011 agreement with the state calls for changes to retirement age eligibility beginning July 1, 2022 (except for individuals who retire under the Hazardous Duty provisions of the SERS Pension, such as members of the NP-4 Corrections Bargaining Unit, and certain members of the P-2 Human & Social Services and Judicial Local 749 Bargaining Units).

The agreement preserved the eligibility of state employees to retire at age 60 with 25 years of service or 62 with 10 years of service or more. The Normal Retirement Date will not be raised until July 1, 2022.

However, if you are in SERS Tier II, IIA, or the Hybrid Plan and you want to preserve the current Normal Retirement Date, you must elect to do so by Sept. 1, 2013. Please note the deadline has been moved from July 1 due to the concerns our union and others raised with the State.

Choosing this option will require an additional contribution on a continual basis beginning the first full pay period following July 1, 2013. The costs of that contribution will be based on the actuarial pension cost of maintaining the normal retirement eligibility in the present plan but will not exceed .72%.

This scenario does NOT affect state employees who plan to stay in the ARP (Alternate Retirement Plan), those hired after July 1, 2011, or those who will reach their Normal Retirement Age prior to July 1, 2022.

  • Click here for FAQ's (frequently asked questions) on the Option to Retain Grandfathered Normal Retirement Date for the State Employees Retirement System.
  • Click here to complete the Option to Retain Grandfathered Normal Retirement Date.

Finally, we have gotten questions regarding workers who reach normal retirement age by July 1, 2022 but continue to work in state service.

If you have already reached normal retirement age by 7/1/2022 and opt to continue working for the state, you will retain that normal retirement age and NOT be subject to the post 2022 retirement age change.No additional contributions are required.

Those who elected to preserve their retirement age but decide to work the additional 3 years to the new retirement age would get their money returned to them without interest.

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