The Teachers’ and State Employees’ Retirement System (TSERS) and the Local Governmental Employees’ Retirement System (LGERS) are defined benefit plans. Defined benefit plans use a formula to calculate monthly retirement benefits once eligibility requirements have been met. Your contributions, your employer’s contributions and the investment earnings on total contributions pay the cost of providing your retirement benefits. After your retirement becomes effective, retirement allowance increases may be granted, but are not guaranteed.
Increases are usually effective in July. If granted, increases are usually calculated as a percentage increase in your monthly benefit.
Under Option 4
Any percentage increase you are granted before age 62 will be applied to the inflated benefit payments you are receiving at that time; however, upon reaching age 62 your benefit payments will be reduced to the original amount promised after age 62 plus the percentage increases (not the dollar amount of increases) granted before age 62.
View a full explanation of retirement allowance increases