I have followed the MSEP 2011 and SB 62 discussion on Rumor Central with interest, even though I fall under MSEP 2000. One of the things some of my colleagues that have been hired since 1/1/11 have been discussing is the minimum retirement age. If I read your posts correctly, the only time a person can receive retirement benefits under MSEP 2011 is when they either reach age 67 or when they hit 90 and out after age 55. To reach 90 and out, as I understand it, a person 55 would need 35 years of service, correct? In other words, someone age 55 would have to start work at age 20 and stay in state employment for the next 35 years to be eligible. Otherwise anyone with less than that amount of service would have to wait until they're 67 or their service plus age is 90. It appears there's no "middle ground" under this provision. Am I missing something?The criteria for normal retirement eligibility for MSEP 2011 members is:
• Age 67 with 10* yrs. of service or
• “Rule of 90” - at least age 55 with age and service equaling 90 or more. (Your example is correct: 55 + 35 = 90)
A member of MSEP 2011 could elect early retirement, which is a reduced benefit amount.
• Age 62 at the time of termination with 10* yrs. of service
(The base benefit will be reduced 1/2 of 1% (.005) for each month your age is younger than normal retirement/67.)
*Effective January 1, 2018, the vesting requirement will reduce from 10 years to 5 years of service for MSEP 2011 members actively employed ON or after January 1, 2018.
No comments