It is important to have a thorough understanding of the differences between the two plans before deciding. We will begin with a brief overview of Plan 2 and Plan 3.
| Choose Your Plan, Choose Your Benefit | ||
|---|---|---|
| Plan 2 has a guaranteed lifetime benefit | Plan 3 has a guaranteed lifetime benefit plus an investment program you select and contribute to | |
| Plan 2 benefit formula 2% x service credit years x average final compensation |
Plan 3 benefit formula 1% x service credit years x average final compensation |
Your contributions and their investment returns |
Although your employer will begin taking Plan 2 contributions, you will default to Plan 3 in 90 days if you do not formalize your choice.