Summary of Benefits
Am I Eligible?
To be eligible for a benefit from LAGERS you must work in a covered position, become vested and reach a retirement age. Your employer determines which departments are covered and how many hours you must work annually to be covered. You become guaranteed to receive a payment from LAGERS once you have completed a total of 60 months of service within the system. You employer chooses when you may begin drawing your LAGERS benefit as either normal retirement or rule of 80.
How Do I Calculate My Benefit?
LAGERS’ benefit formula multiplies an employer elected percentage by how much you make and how long you work. Your employer chooses a benefit multiplier between 1% and 2.5%. As well, your employer chooses the wages used in your benefit calculation as either the highest consecutive 36 or 60 months. Generally, the longer you work for your LAGERS employer, the larger your future benefit will be. If your employer recently joined LAGERS, your employer elections may impact your credited service.
How Do I Increase My Benefit?
The most effective way to increase your LAGERS benefit is to work longer or earn a higher salary. However, other ways your benefit may be increased is through a purchase of service or a benefit change at your LAGERS employer. Keep in mind, if your employer requires you to contribute, those contributions are not factored into your benefit calculation.
In the event a disability or death occurs, you or your survivors may be eligible for a disability or survivor benefit. As well, there are some specifics you may need to know about regarding how your benefit may be handled in divorce proceedings.
You can apply for your LAGERS retirement benefit 30-90 days prior to when you want to receive your first payment. There are many different options for your benefit that may pay you and beneficiaries. Your benefit is taxable, but you may qualify for some exemptions or deductions. As well, your benefit will keep the pace of the cost of goods through LAGERS cost of living adjustments.
Changes in Employment
If you’re leaving LAGERS covered employment, your age and your service credit will determine how your benefit will be handled. If you’re returning to LAGERS covered employment, your vested status and what action you took with your previous benefit will determine your vesting and benefit calculation.