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The Basic Plan and the Member Investment Plan |
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Until 1974, both employers and employees contributed to the pension fund. It was then a contributory plan. By 1977 the system was funded entirely through employer contributions-a noncontributory plan known as the Basic Plan.
The Member Investment Plan (MIP) was introduced in late 1986. This contributory plan provides more generous pension benefit options. Those who were Basic Plan members at the time could choose the MIP, which took effect January 1, 1987. Basic Plan members again had the opportunity to select the MIP in the fall of 1991.
The majority of our members today are in the Member Investment Plan. For the most part, our website describes that plan, not the Basic Plan. The exceptions, mostly related to contribution rates and pension calculations, are noted.
You can compare the key differences between the two plans in the following chart.
MIP-Basic Plan Comparison
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Comparison
|
Member Investment Plan
|
Basic Plan
|
|
| Membership |
Employees first hired on or after January 1, 1990.
Employees who elected MIP during enrollment periods.
|
Employees who did not elect the MIP plan during the MIP enrollment periods. |
| Contributions |
Yes |
No |
| Eligibility |
46 with 30
60 with 10
60 with 5 (with stipulations)
55 with 15 (with stipulations)
|
55 with 30
60 with 10
55 with 15 (with stipulations)
|
| Nonduty death benefit eligibility |
10 years if member under age 60 at time of death.
5 years if member 60 or older at time of death.
|
15 years if member under age 60 at time of death.
10 years if member 60 or older at time of death.
|
| FAC period |
36 months |
60 months |
| Cost of actuarial-based service credit |
Actuarial Cost Table
|
Actuarial Cost Tableless 4% |
| Vesting |
10 years
5 years if retiring under the 60 with 5 provision.
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10 years |
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