Defined Benefit Retirement Plan (DBRP)



In a defined benefit plan, both the amount contributed and the benefit is known. Your benefit is calculated using a specific formula based on your salary and years of service.

The DBRP provides retirement, disability and death benefits to the State of Montana, the university system, local governments and certain school district employees.

The Basics of the DBRP

DBRP SUMMARY OF BENEFITS AND CONTRIBUTION RATES

DBRP Contribution Rates for Members Hired Before 7/1/2011
  Member Employer State
State/University 6.90% 7.17% N/A
Local Governments 6.90% 7.07% 0.10%
K-12 School Districts 6.90% 6.80% 0.37%

DBRP Contribution Rates for Members Hired On or After 7/1/2011
  Member Employer State
State/University 7.90% 7.17% N/A
Local Governments 7.90% 7.07% 0.10%
K-12 School Districts 7.90% 6.80% 0.37%

Summary of DBRP Benefits

Highest Average Compensation (HAC)

For members hired before 7/1/2011:

Highest consecutive 36 months. It is not necessarily the last 36 months of your career.

For members hired on or after 7/1/2011:

Highest consecutive 60 months. It is not necessarily the last 60 months of your career.

Years of Service Required and/or Age Eligible for Benefit

For members hired before 7/1/2011:

  • Any age with 30 years of service
  • Age 65 regardless of years of service
  • Age 60 with 5 years of service
  • Age 50 with 5 years of service - actuarially reduced
  • Any age under 60 with 25 years of service - actuarially reduced

For members hired on or after 7/1/2011:

  • Age 70 regardless of years of service
  • Age 65 with 5 years of service
  • Age 55 with 5 years of service - actuarially reduced

Vesting

5 years

Membership Service Factor

For members hired before 7/1/2011:

  • 1.785% of HAC if less then 25 years of membership service.
  • 2% of HAC if 25 or more years of membership service.

For members hired on or after 7/1/2011:

  • 1.5% of HAC for less than 10 years of service
  • 1.785% of HAC for more than 10 years of service, and less than 30.
  • 2% of HAC for 30 years of membership service or more.

Guaranteed Annual Benefit Adjustment (GABA)

After the member has completed 12 full months of retirement, the member's benefit increases by the applicable percentage (provided below) each January, inclusive of all other adjustments to the member's benefit.

  • 3% for members hired before July 1, 2007

  • 1.5% for members hired on or after July 1, 2007


RETIREMENT TOOLS

Retirement calculators are available on the internet to help you determine your retirement financial needs.

Attend an informative webinar from the convenience of your home or work and learn more about retirement. No Password required, just login as a “GUEST”- click here; “Education Calendar”.

MORE INFORMATION ABOUT THE DBRP

Member Handbook   This handbook contains valuable retirement information. The pdf file is large and may take some time to download. Available in both readable and printable versions.

DBRP is governed by the Montana Codes Annotated, Title 19, Chapter 2 & Chapter 3.

Actuarial Valuation as of June 30, 2011. A summary of assets, contributions and liabilities relevant to the DBRP trust fund.

Rule Notice   A notice for changes to MPERA Rules that may impact the DBRP.


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