Plan features

FederalStateLocal

Public retirement systems should establish a maximum vesting period of five years for DB plans and one year for employers’ matching contributions to defined contribution or hybrid plans. 

Public retirement systems should provide prefunded, annual, automatic, and full cost-of-living adjustments based on an accurate inflation index. 

Employee benefits applied to full-time federal, state, and local government workers should be available to part-time workers on a prorated basis. 

States and localities should improve intrastate and interstate portability of public employees’ service credits. This should be subject to the financial integrity of each system. 

For information about pension integration with Social Security, see Integration of Retirement Plans with Social Security