Accelerated Pension Benefit Payment (APBP) for Retiring Tier 1 Members

This voluntary program for Tier 1 members who retire before June 1, 2024, allows members to elect a reduced and delayed automatic annual increase (AAI) in exchange for a lump-sum payment at retirement. At retirement, members can elect to forfeit the 3% compounded AAI and instead receive 1.5% non-compounded AAIs, beginning the January 1 following the first anniversary of retirement or the member’s 67th birthday, whichever is later. Survivors of members who choose this option will receive the reduced 1.5% non-compounded AAIs. The election to participate cannot be changed after retirement.

Members who forfeit the Tier 1 AAIs receive a lump-sum payment equal to 70% of the difference in the value of the 3% compounded AAI and the value of the 1.5% non-compounded AAI. This current value is calculated by SERS and will be based on current actuarial assumptions and the relevant member information. These payments must be transferred to a qualified retirement plan authorized by the IRS.

You can find the APBP Fact Sheet on the member services website, and if you are eligible to retire before June 1, 2024, you can estimate your APBP amount by going to and select the COLA buyout tab.