Example: A member is age 67, has 20 years of credited service, and an eight year average salary (96 highest consecutive months within the last 120 months, subject to the Tier 2 salary maximum) of $113,550.53.
60% x $113,550.53 = $68,130.32 annually or $5,677.53 per month.
This member’s reduced retirement benefit with 20 years of service at age 62 is $47,691.22 annually or $3,974.27 per month because of the 1/2 of 1% reduction.
If you are age 67 and qualify for the maximum retirement annuity, you can elect to limit contributions. You would no longer pay full contributions to JRS. Instead, you would only make contributions based on future salary increases.
Reciprocal service can be used to reach the maximum benefit. However, the member cannot retire from any reciprocal system if their service was used to reach the maximum benefit and limit contributions until the service is no longer needed.
Contact JRS if reciprocal service allows you to reach the maximum benefit and before accepting an independent benefit from a reciprocal system.
Limiting your contributions is irrevocable. Pension benefits are based on the eight highest consecutive years out of the last 10 in which the salary used to calculate benefits cannot exceed the Tier 2 annual salary maximum for that calendar year.
Annual Pension Increases
If you retire at age 67 or older, you will receive a pension increase of 3% or the annual percentage increase in the Consumer Price Index-U, whichever is less on January 1 following your first full year of retirement. These annual increases are compounded on the previous year’s annuity. Pension increases are not limited by the maximum retirement benefit.
Returning to Employment
As a Tier 2 retiree, your JRS benefit will be suspended if you become a full-time participant in JRS or any Reciprocal System.
Your JRS benefit will continue if you:
- Accept private employment.
- Work for the state in any temporary position, except judge, for 75 days or less per calendar year.
If You Are Recalled
As a Tier 2 retiree, your JRS benefit will be suspended if you become a full-time participant in JRS or any Illinois reciprocal retirement system. JRS will recalculate your benefit based on your additional judicial service. Your pension benefit will be reinstated the day following your removal from the bench.
If you retired with the maximum annuity and are at least 67 years of age, upon returning to retirement, you will be given the 3% increase or the annual unadjusted percentage increase in the Consumer Price Index-U, whichever is less, for any January during your recall service.