If you were in active service on June 28, 1995 you were eligible to make an irrevocable election within 90 days to participate in the 55/25 Tier Enhancement Program. Members who join BERS after June 28, 1995 are mandated to participate in the 57/5 Tier Enhancement Program. The initial contribution rate was 4.35% (plus 1.98% for members in physically taxing positions). Effective with the first payroll in January, 1998 the contribution rate changed from 4.35% to 2.85%.
Contributions under 55/25 and 57/5 are deducted from payroll on a pre-tax basis as authorized by Section 414(h)(2) of the Internal Revenue Code. These contributions are used to enhance retirement benefits. Fifty percent of these contributions are deemed to be employer contributions.
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