SRS provides retirement, disability and death benefits to all Department of Justice criminal investigators hired after July 1, 1993; detention officers hired after July 1, 2005; and to all Montana sheriffs and their beneficiaries.
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.
SUMMARY OF SRS BENEFITS
Monthly Benefit Formula: 2.5% of HAC per year of service.
Highest Average Compensation (HAC)*:
For members hired before July 1, 2011: Highest consecutive 36 months
For members hired on or after July 1, 2011: Highest consecutive 60 months
Required age and years of service to be eligible for a benefit:
- 20 years regardless of age
- Age 50 with 5 years of service - actuarially reduced
Vesting: 5 years
Guaranteed Annual Benefit Adjustment (GABA): If you were hired after July 1, 1997, or elected GABA - after you have completed 12 full months of retirement, your benefit will increase by a maximum of 3% each January, inclusive of all other adjustments to your benefit.
- 3% for members hired before July 1, 2007
- 1.5% for members hired on or after July 1, 2007
* 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.