As a result of legislation approved earlier this year, 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.
Under the law (SSB 6340), eligible PERS 1 and TRS 1 retirees will receive a one-time, permanent 1.5% increase in their monthly benefit, to a maximum of $62.50 per month. The increase applies to PERS 1 and TRS 1 retirees receiving a monthly benefit on or before July 1, 2017. The adjustment does not apply to retirees who already qualify for an annual increase in 2018 through one of the existing minimum benefit provisions provided by the plans.
The law takes effect July 1, 2018; the one-time increase will be reflected in retirement benefits paid at the end of July. For more information, check out the Frequently Asked Questions below or contact DRS.
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What is SSB 6340?
SSB 6340 was passed by the Legislature and signed into law by the governor during the 2018 legislative session. It provides a one-time, permanent increase of 1.5% (not to exceed $62.50) 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, 2017 will receive this one-time increase. However, there are certain exceptions. See next question.
Who will NOT be eligible for this increase?
If I’m eligible to receive this increase, how much will it be?
The increase will be 1.5% (not to exceed $62.50).
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?
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 1.5% increase will be calculated including those adjustments.