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How does the increase from 1.9% to 2.2% work?

The Bill to increase the multiplier from 1.9 to 2.2% for the high five is in the Omnibus Bill. We've received many questions regarding this. If signed into law this is how it will work.

From the 2024 Pension and Retirement Bill (DE 24-0301)

Section 14 increases the employee contribution rate for the PERA Correctional Plan by 1% of pay, from 5.83% to 6.83%, and the employer contribution rate by 1.5% of pay, from 8.75% to 10.25%. These increases are intended to fully fund the increase in the multiplier in section 15. 

Section 15 increases the multiplier used to calculate the annuity amount for members of the PERA Local Government Correctional Plan from 1.9% to 2.2% for service earned after June 30, 2025. The current multiplier of 1.9% will continue to apply to years of service earned prior to the effective date. With these changes, the benefit formula will be: 

Annual benefit = ((years of service earned prior to July 1, 2024, x 1.9%)

 + (years of service earned after June 30, 2024, x 2.2%)) x high-five average annual salary

We hope this answers your questions.

This will take effect July 2025.

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