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Connecticut State Employee Tier IV Pension Formula:
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The Connecticut State Employee Tier IV hybrid pension is a defined benefit portion that provides retirement income based on years of service and final average salary. This calculation applies specifically to Tier IV members of the Connecticut State Employees Retirement System.
The calculator uses the Tier IV pension formula:
Where:
Explanation: The formula calculates the annual pension benefit by multiplying 1.625% times the years of service times the final average salary.
Details: Accurate pension calculation is essential for retirement planning, helping state employees understand their future income and make informed decisions about retirement timing and financial preparation.
Tips: Enter years of service (including partial years as decimals) and final average salary in USD. Both values must be positive numbers.
Q1: What is Tier IV in Connecticut state employment?
A: Tier IV refers to employees hired between July 1, 1984 and June 30, 1997, with specific pension calculation rules different from other tiers.
Q2: How is Final Average Salary (FAS) calculated?
A: FAS is typically the average of the three highest consecutive years of salary, but specific rules may vary by employment contract.
Q3: Are there maximum benefit limits?
A: Yes, pension benefits may be subject to IRS limits and plan-specific maximums based on years of service and salary history.
Q4: Does this include the hybrid plan components?
A: This calculator only computes the defined benefit portion. The hybrid plan may include additional defined contribution elements.
Q5: When can Tier IV employees retire?
A: Retirement eligibility depends on age and years of service, with different requirements for normal, early, and deferred retirement.