Examples In Action

Junior College in Northern California College

This plan is funded by 1% mandatory employee contributions and a 1% employer match. Management and labor worked closely to implement the plan, and there is a board of trustees with representatives from both sides.

The trustees will set the Standard Benefit Amount (SBA), with actuarial advice, and an employee with 20 years of employment with the college (and at least 5 years of contributory service) will receive a monthly payment of 100% of the SBA.

There is a gradual reduction from 100% of the SBA for fewer years of service.