Benefit Changes

Your employer can individually change the benefit multiplier, final average salary, employee contributions and retirement eligibility once every two years.

Benefit Upgrades

When an upgrade to your benefit occurs at a LAGERS employer, it is retroactive. For example, if you have worked for your LAGERS employer for 10 years under the 1.00% (L-1) benefit program and they choose to upgrade to the 1.25% (L-3) benefit program, your previous 10 years will be increased to the 1.25% program along with any time you work for your employer in the future. Here’s an example:

Benefit Downgrades

When a downgrade to your benefit occurs, it will affect future service only. For example, if you work for your employer for 10 years under the 1.25% (L-3) program and your employer downgrades to the 1.00% (L-1) program, only the service going forward from the downgrade will calculate using the 1.00% multiplier. The service prior to the downgrade is guaranteed to be at the level it is currently at or higher.

Changes to Retirement Eligibility

Your employer may have two options available to change retirement age eligibility. The first option is the rule of 80. If your employer adds the rule of 80, all active employees who qualify may be able to retire early without a reduction. If your employer currently has the rule of 80 and chooses to remove it, it will only affect new hires going forward.

The second option is to add a “Public Safety” Department for EMS personnel, jailors and emergency telecommunicator first responders for the purposes of an age 55 retirement.

Change to Employee Contributions

Your employer will choose the employee contribution amount as either 0%, 2%, 4%, or 6%. Changes to the amount of your contributions will be applied from the date of the change forward. If your employer has not required any contributions from employees for at least two years, it can retroactively refund all current active member’s previous contributions through the Non-Contributory Refund.