Public Employee Retirement System (PERS) Defined Benefit Retirement Plan (DBRP)

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.

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:


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:

  • Age 70 regardless of years of service or in active service
  • Age 65 with 5 years of membership service

Early retirement: Age 55 with 5 years of service - actuarially reduced

Vesting: 5 years of membership service

Guaranteed Annual Benefit Adjustment (GABA): For PERS members hired after July 1, 2007, the GABA will be 1.5%.

For PERS members hired after July 1, 2013, the GABA will be a “sliding scale” rate from 0% to 1.5% determined each year by the funding status and the amortization of the PERS fund. GABA is 1.5% for all current and future retirees for each year PERS is funded at or above 90%. GABA is reduced 0.1% for each 2% PERS is funded below 90%. If PERS amortization period is 40 years or more, GABA is 0%. These GABA provisions are based on a 2013 legislative amendment that applies to all PERS members and retirees, effective July 1, 2013. See §19-3-1605, MCA (2013).

* 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.