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.
In late 1986 the Member Investment Plan (MIP) was introduced. 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
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.
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