What is the Percent of Salary Method?
The Percent of Salary method may be used beginning July 1, 2008 and must be requested when you apply for retirement. The cost for each month you purchase is a percentage of your salary, plus 5.5% annual interest compounded monthly. PERS Plans 1 and 2 JBM members will pay 5% of their salary; PERS Plan 3 JBM members will pay 2.5% of their salary. • The cost will be determined beginning with the salary for the latest judicial month being increased. • The months you increase cannot cause your benefit to exceed your cap (75% of your AFC for Plan 1 and Plan 2 members or 37.5% of AFC for Plan 3 members). • The purchase price, using this method, will not exceed the purchase price using the actuarial method.
Related Questions
- Are the "costs associated with each Co-I" simply the co-I salary costs associated with the percent commitment just above, or do they include ALL costs such as postdocs, travel, etc.?
- If I want to retain my current 37.5 hour work schedule and forfeit the 6.67 percent salary adjustment, can I choose to do so?
- What is the method for calculating percent of allowed charges (POAC) factors?
