SERS workshop walks tier 2 employees through benefits, calculators, service purchases and disability rules

A State Employees Retirement System representative led a workshop for tier 2 state employees explaining how to use the agency’s online member services and outlining key features of tier 2 retirement benefits.

The presenter said the session was "designed for employees who are new to state employment or who are not retirement age but want to learn about SCRS SCRS benefits," and walked attendees through the SERS website, member sign-in (iLogin), benefit-estimate tools, calculators and forms. The presentation emphasized that members should use a personal email to create an iLogin account and that the site provides downloadable pension estimates.

Why it matters: tier 2 rules determine when a member vests and how benefits are calculated. The presenter summarized the basic thresholds for tier 2 members: 10 years of service credit to vest; age 67 with 10 years generally yields unreduced retirement under the regular formula; age 62 with 10 years can qualify for a reduced retirement. "Annual pension increases are half of the consumer price index or 3% of the pension, whichever is less," the presenter said, describing the tier 2 cost-of-living adjustment (COLA) and noting that tier 2 increases are non‑compounding.

How benefits are computed: the presenter explained final average compensation (FAC) is the average of the highest consecutive 96 months in the last 120 months of service and described how the regular and alternative formulas use different multipliers (for example, regular-formula coordinated members use a 1.67 factor, while some alternative-formula positions use larger multipliers). Contribution rates vary by coverage: coordinated regular-formula members contribute 4% (and participate in Social Security), while some noncoordinated regular-formula members contribute 8% because they do not pay into Social Security. The presenter also noted that Empower administers the deferred-compensation plan.

Optional service purchases: the workshop covered how members can request cost estimates to buy optional service credit and reviewed payment options (pretax payroll deduction, lump sum, or roll-in from deferred comp or an eligible IRA). In a worked example the presenter stated that buying 6 months of short-period service for $2,000 in the demonstration would add about $9.50 per added month to the pension estimate and that, in that example, the purchase cost would be recovered in under three years. The presenter cautioned that payable benefit-time conversions require collection of retirement contributions on the converted amount and that SERS offices (Springfield and Chicago) do not accept cash.

Disability and death benefits: presenters reviewed occupational and non-occupational disability rules. For tier 2 members the presenter described occupational disability payments at 75% of FAC (supplementing workers' compensation up to that amount), and explained temporary-disability eligibility and filing requirements. The workshop named Gallagher Bassett as the workers' compensation administrator for state employees and CorVel for toll-highway employees. The presenter also summarized active-employee death benefits, including a one-time lump sum and a monthly survivor annuity for qualified survivors.

Reciprocity and forms: attendees were shown the reciprocal-systems fact sheet (13 state systems) and told that reciprocity requires specified minimum employment periods and sometimes repayment of prior refunds. The presenter pointed participants to the site's forms and applications (benefit packets, change-of-beneficiary, service-purchase requests) and highlighted the sick/vacation conversion chart for establishing service credit.

Next steps and resources: the presenter closed by listing phone numbers and web resources (SERS member services, deferred-comp division, Social Security Administration, myBenefits Service Center, Empower) and encouraged members to schedule one-on-one counseling by phone or in person at the Springfield or Chicago offices for account-specific questions.

The workshop concluded with the presenter inviting attendees to contact SERS for individual appointments.