Your LAGERS benefit provides you with monthly payments monthly payments when you leave the workforce. Attached to this newsletter is your annual statement showing your current and projected monthly payments. Here are 5 things that will help you better understand your LAGERS benefit.
1. Each Month You Work, Your Benefit Grows Larger.
Every month you continue to work at a LAGERS employer, your benefit grows larger. Your employer’s elected benefit determines the rate it grows each month .
2. Benefits Are Calculated Using a Formula, Not an Account Balance.
LAGERS benefits use a formula designed to be a direct reflection of how long you work and how much you earn while working for your LAGERS employer. You may be contributing to LAGERS and accumulating a member account balance. The monthly payments you receive from LAGERS are not linked to your account balance. However, your benefit is directly related to LAGERS benefit formula. The formula multiplies your average salary, your service credit and your employer’s elected multiplier together to produce your lifetime monthly payment amount.
3. Becoming Vested is Very Important
The information above about calculating your benefits hinges upon becoming vested. Becoming vested guarantees you receive a monthly payment from LAGERS. Before becoming vested, you’re not guaranteed to receive a monthly payment. To become vested, you must complete 60 months (5 years) of service with one or more LAGERS employers.
4. Benefits Are Payable for Life!
LAGERS monthly payments will pay you from when you begin drawing your benefit until you pass away. If you live 50 years in retirement, you will continue to receive a payment each month. As well, there are options available for you at retirement that will provide monthly payments over two lifetimes.
5. Disability & Survivor Benefits, Too.
Your LAGERS benefits pay you monthly payments when you leave the workforce, even if it is due to something unexpected. In the event you were to become disabled or pass away while still working, you or your survivors may be eligible to receive monthly income from LAGERS.
These 5 things are just the tip of the iceberg when it comes to understanding your LAGERS benefit. For more information about LAGERS, visit LAGERS website, email us, or give us a call – we’re happy to serve you!