How will a voluntary pay reduction impact the amount of my retirement benefits at SURS?
SURS benefits are based on years of service, actual earnings, and accrued interest. A voluntary pay reduction will reduce actual earnings and thus impact SURS retirement benefits. Traditional and Portable Packages For purposes of the Traditional and Portable Packages, an employee’s SURS retirement benefit will be the greater of the annual retirement annuity determined in accordance with “General Formula” or the “Money Purchase Formula.” Therefore, the impact of a voluntary pay reduction depends on which formula will produce the greater benefit. Money Purchase Formula Implications For the majority of employees hired after September 1, 1969 and before July 1, 2005, the Money Purchase Formula produces the greater SURS retirement benefit. The Money Purchase Formula is based on the amount of employee contributions, interest, and imputed State of Illinois contributions in the employee’s SURS account at retirement. This total dollar amount is then divided by an age annuity conversion factor,
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