FURS retirement system provides retirement benefits to firefighters employed by first and second-class cities; other cities or rural fire districts that adopt the plan; and to firefighters hired by the Montana Air National Guard on or after October 1, 2001. 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 FURS BENEFITS
Monthly Benefit Formula if you elected GABA: 2.5% of HAC per year of service.
Highest Average Compensation (HAC)*: highest consecutive 36 months
Monthly Benefit Formula if you did not elect GABA: the greater of either
Required age and years of service to be eligible for a benefit:
Vesting: 5 years
Guaranteed Annual Benefit Adjustment (GABA): After you have completed 12 full months of retirement, your benefit increases by a maximum of 3% each January, inclusive of all other adjustments to your benefit.
Minimum Benefit Adjustment (Non-GABA): If hired before July 1, 1997 and you did not elect GABA, your monthly retirement, disability or survivor's benefit may not be less than ½ the compensation of a newly confirmed firefighter employed by the city that last employed you (provided you have at least ten years of service credit). If a benefit falls below that minimum, the benefit is increased and paid to the benefit recipient.
* 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.