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Bruce Rauner, Governor

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   Credited Service for Tier 1   

Credited Service


Eligibility

When hired, you become a member of SERS and mandatory contributions are automatically credited to your account.

How Credited Service is Computed

Monthly Employees
Daily (Per Diem) Employees
Hourly Employees
Monthly Credit
15 calendar days or more
10 work days or more
75 hours or more
1
8 thru 14 calendar days
5 thru 9 work days
38 - 74 hours
1/2
less than 8 calendar days
less than 5 work days
less than 38 hours
1/4


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.


Credited Service

Eligibility
Contributions
Employer Pick-Up
Member/Retiree/Survivor Menu Page
State Employees' Tier 1 Handbook
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