Attention Police & Fire Members: Actuarial Factor Changes Effective July 1, 2025

Actuarial factors will be updated for benefits effective July 1, 2025 or later in the Police & Fire Plan. These factors are used when a member designates a survivor option for a monthly benefit or purchases military service credit earned prior to public employment.

Factors are subject to updates when changes occur to investment return assumptions, mortality rate assumptions, or plan provisions. The new factors include these updated assumptions:

>>Legislative change of the assumed rate of return from 7.5% to 7.0%, and

>>Updated mortality assumptions based on a recent actuarial experience study.

Retiring Soon?

These updated factors may impact your retirement decision if you are planning to select a survivor option with your Police & Fire benefit. There is a positive impact for benefits effective July 1 or later.

>>Retiring July 1 or later: Please review your myPERA account for updated estimates with benefit effective dates July 1, 2025 or later. Your next annual Personal Benefit Statement will also include updated estimates reflecting this change.

>>Retiring before July 1: You may want to compare estimates with a benefit effective date of July 1 or later to review all of your options. This change may impact when you choose to retire.

Thinking of Early Retirement?

You may want to reconsider and work up to your full retirement age. The Pension Protection Act of 2006 in conjunction with Secure 2.0 allows public safety officers to reduce their taxable income by up to $3,000 annually in costs paid for qualified insurance premiums, such as health, dental, and long-term care. During the year, you will pay your insurance premiums directly to your providers. When you file your federal income taxes for that year, you will apply for the reduction.

However, you are only eligible for this opportunity if you leave your public safety position after qualifying for a full, unreduced PERA benefit.

Contact a tax professional if you have any questions.