The PERS - DBRP provides retirement, disability and death benefits to the State of Montana, the university system, local governments and certain school district employees. In a defined benefit plan, both the amount you contribute and your future benefit is known. Your benefit will be calculated using a formula based on your salary and years of service. Click here for a more in-depth look at the PERS Defined Benefit Retirement Plan.
If you were hired before July 1, 2011, please click here for a summary of benefits.
If you were hired on or after July 1, 2011, your benefits will be as follows:
SUMMARY OF PERS - DBRP BENEFITS
FOR MEMBERS HIRED ON OR AFTER JULY 1, 2013
Monthly Benefit Formula:
Membership Service Factor (see below) x years of Service Credit x HAC
1.5% - If you have more than 5 years and less than 10 years of membership service.
1.7857% - If you have less than 30 years of membership service.
2% - If you have 30 years or more of membership service.
Highest Average Compensation (HAC)*: Highest consecutive 60 months of gross salary.
Required age and years of service to be eligible for a benefit
Full service retirement:
Early retirement: Age 55 with 5 years of service - actuarially reduced
Vesting: 5 years of membership service
Guaranteed Annual Benefit Adjustment (GABA) revised for current and future PERS retirees
The GABA is reduced to 1.5% for all current and future PERS retirees as long as the system is funded at 90%.
The GABA is reduced 0.1% for each 2% below a 90% funding level. If the amortization period is 40 years or greater, the GABA is 0%.
* HAC Capped: There is now a 110% cap on compensation considered as part of a member's highest average compensation. This applies to members of all systems who are hired on or after July 1, 2013. Also, bonuses have been removed from the definition of compensation for all retirement systems effective for bonuses paid on or after July 1, 2013.