Contributions
Contributions are based on a percentage of total
compensation, including overtime pay. With certain exceptions, all members who join SERS must contribute to Social Security.
Regular Retirement Formula
Members with Social Security 3.5% (pension) + .5% (survivors') = 4.0%
Total
Members without Social Security 7.0% (pension) + 1.0% (survivors') = 8.0%
Total
* If you have no eligible survivors when you retire, you will receive a refund of the survivors' portion of your contributions.
Alternative Retirement Formula
Members with Social Security 8.0% (pension) + .5% (survivors') = 8.5%
Total
Members without Social Security 11.5% (pension) + 1.0% (survivors') = 12.5%
Total
* If you do not qualify for the
alternative formula when you retire, you will receive a refund of the alternative formula contributions in excess of the
regular formula contributions.
Employer Pick-Up
From January 1, 1992 through June 30, 2003, most state employees had all, or a portion, of their contributions "picked-up" or paid for, by the State of Illinois. Effective July 1, 2003, some members continued to have their employer pick-up retirement contributions paid by the State of Illinois. Employees not under a collective bargaining agreement typically pay the entire employee contribution. In some cases, employees have a portion of their contributions picked-up, and contribute a lesser amount through payroll deductions.
Regular formula employees contributing at either 4% or 8% of their gross salaries will typically have 4% picked-up if the employee is under a collective bargaining agreement. For alternative formula employees contributing at either 8.5% or 12.5% of their gross salaries, the pick-up rate is 5.5% if the employee is under a collective bargaining agreement.
All contributions are credited to the individual member's account, regardless of the source. When a member receives a lump sum
refund, the employer pick-up contributions are included. The employer pick-up is also included in the calculation of any death benefit involving member contributions.