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Increases for MIP retirees
As a Member Investment Plan (MIP) retiree, after you're retired a full year, you'll receive a fixed 3% increase in your monthly pension each October. For example, if your retirement effective date is Dec. 1, 2017, your first increase will be in October 2019.
Your post-retirement increase doesn't compound, but it does accumulate. So, if your first post-retirement increase is $36 per month, every October you can expect to get $36 more per month than you did the previous year.
Example of Post-Retirement Increase (MIP)
|Molly retired on Dec. 1, 2017, with a monthly pension payment of $1,200. Beginning October 2019 (the first October after she's been retired a full year) she'll begin receiving an additional 3% of her initial pension, or $36 a month.
The increase is based on your initial pension amount after applying any early reduced or survivor option reduction. If you choose one of the equated options, the advance portion of your pension is not included when the 3% is calculated.
Note: If you chose the 100% survivor option, your beneficiary would receive the same annual increase you received. If you chose the 75% or 50% survivor option, your beneficiary would receive either 75% or 50% of the annual increase you received.
Increases for Basic Plan retirees
If you're a Basic Plan retiree, you should not plan on a scheduled post-retirement increase. However, if the plan's investments exceed predictions over a period of years, you may receive a distribution of the excess earnings. You'll be notified if and when a supplemental payment will be issued.
Wage adjustments after you retire
If your school contract is under negotiation when you retire, you might have a wage adjustment after your pension begins. Once your school reports the correction, we will correct your final average compensation and pension amount. You'll be paid all past due benefits.