Friday, May 24, 2024

PERS 1, TRS 1 one-time benefit increase in July

from the Department of Retirement Systems:

Posted on May 4, 2023

Certain retirees in Plan 1 of the Public Employees’ Retirement System and Plan 1 of the Teachers’ Retirement System (PERS 1 and TRS 1) will receive a one-time benefit increase in July of this year. This is the result of legislation approved in 2023.

Under the law, eligible PERS 1 and TRS 1 retirees will receive a one-time, permanent 3% increase in their monthly benefit, to a maximum of $110.00 per month. The increase applies to PERS 1 and TRS 1 retirees receiving a monthly benefit on or before July 1, 2022. The adjustment does not apply to retirees who already qualify for an annual increase in 2023 through one of the existing minimum benefit provisions provided by the plans.

The one-time increase will be reflected in retirement benefits paid at the end of July.

Plan 1 Benefit increase Frequently Asked Questions

What is SB 5350?

SB 5350 (the companion bill of HB 1057) was passed by the Legislature and signed into law by the governor during the 2023 legislative session. It provides a one-time, permanent increase of 3% (not to exceed $110.00) to the monthly pension benefit of Public Employees Retirement System (PERS) Plan 1 and Teachers’ Retirement System (TRS) Plan 1 retirees.

Who will receive the increase?

PERS Plan 1 and TRS Plan 1 retirees who were receiving a monthly benefit on July 1, 2022 will receive this one-time increase. However, there are certain exceptions.

Who will NOT be eligible for this increase?

  • TRS Plan 1 retirees who are currently receiving a Temporary Disability retirement benefit
  • PERS Plan 1 retirees currently receiving a Duty Disability Retirement
  • Plan 1 retirees who will receive a Benefit Minimum Increase or an Adjusted Minimum Benefit COLA as these benefits receive a separate increase annually. For more on each of these benefits, check out the COLA page.
  • Plan 1 Legal Order Payees who were not granted COLA eligibility in their Legal Order documents

Note: This is not a complete list. Please see SB 5350 for specifics of eligibility.

If I’m eligible to receive this increase, how much will it be?

The increase will be 3% (not to exceed $110.00).

When will I see the increase in my benefit?

The increase to your benefit will be reflected in your pension payment at the end of July.

If I have purchased service credit or an annuity, will those increases be involved in this benefit increase calculation?

Yes.

If I chose the Auto COLA or the Age 65 COLA, how will these be impacted by this increase?

If you selected the Auto COLA or Age 65 COLA, you will receive those increases first, and then the one-time permanent 3% increase will be calculated including those adjustments.

Leave a Reply

Your email address will not be published. Required fields are marked *