Retirement Plans For Dummies In Illinois
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If your total years of pensionable service and age at retirement added together equal at least 85, then you are entitled to an unreduced LAPP pension as early as your 55th birthday.
The 85 factor is calculated by adding together your age and years of service at retirement. If the total equals at least 85 points, you're entitled to an unreduced PSPP pension as early as your 55th birthday.
To receive a pension benefit, you must have a minimum of 10 years of credited service with SERS. You may retire at: Age 67, with 10 years of service credit. Between ages 62-67 with 10 years of credited service (reduced 1/2 of 1% for each month under age 67).
The state sets specific windows when teachers can retire with benefits based on age and years of experience. For new teachers starting out in Illinois, they can retire with their full benefits at age 67 with 10 years of service.
If you were a member of the LGPS at any time between 1 April 1998 and 30 September 2006, you may be protected under the 85-year rule. You satisfy the 85-year rule when your age and length of LGPS membership add up to 85. Your age and Scheme membership are both measured in full years for this purpose.
You may retire at: Age 60, with 8 years of service credit. Any age, when your age (years & whole months) plus years of service credit (years & whole months) equal 85 years (1020 months) (Rule of 85). Between ages 55-59 with 25-29 years of credited service (reduced 1/2 of 1% for each month under age 60).
The maximum regular retirement benefit for SERS members is 75% of final average compensation. Final average compensation is the average salary of the highest 48 consecutive months over the last 120 months of service.
The safe withdrawal rule is a classic in retirement planning. It maintains that you can live comfortably on your retirement savings if you withdraw 3% to 4% of the balance you had at retirement each year, adjusted for inflation.
Businesses that fail to enroll in Illinois Secure Choice or that don't offer a plan from a private provider could face a penalty of $250 per employee for the first year, escalating to $500 per employee for each subsequent year.
Eligibility. You may retire at: Age 60, with 8 years of service credit. Any age, when your age (years & whole months) plus years of service credit (years & whole months) equal 85 years (1020 months) (Rule of 85).