Tier 1 Noncontributory
Before July 1, 2011
You're Tier 1 if you initially began full-time employment with a URS participating employer before July 1, 2011. Utah Code puts it the other way round: Tier 2 is for people initially entering regular full-time employment on or after July 1, 2011 who have no Tier 1 service credit accrued before July 1, 2011.
Tier 1 Highlights (2026-27), p. 2, Membership Eligibility; Utah Code 49-22-201(2)(a)Tier 2
On or after July 1, 2011
If you initially entered full-time employment on or after July 1, 2011, you chose the Tier 2 Hybrid Retirement System or the Tier 2 Defined Contribution Plan within one year of your employment date. The choice is irrevocable after that year. If you made no choice you're in the Hybrid.
Tier 2 Highlights (2026-27), pp. 1, 6; Comparing Tier 2 Plans (2026-27), p. 13; Utah Code 49-22-201(2)(b)-(d)Short answer: started full-time with a URS employer before July 1, 2011? You're in Tier 1 Noncontributory: 2% a year of your highest 3 years' average, full benefit at 30 years. Started on or after it? Tier 2: the Hybrid (1.5% a year, highest 5) or the DC Plan. More: the formula, the Tier 2 choice, early retirement. Try a Tier 1 or Tier 2 example in the calculator.
The test is when you initially began full-time work with any URS employer, not when your current job started. Tier 1 Highlights (2026-27), p. 2; Tier 2 Highlights (2026-27), p. 4; Utah Code 49-22-201
The two tiers side by side
| Tier 1 Noncontributory | Tier 2 Hybrid | |
|---|---|---|
| Who | Started full-time before July 1, 2011 | Started on or after July 1, 2011 |
| Pension formula | 2% × years × average salary | 1.5% × years × average salary |
| Average salary | Highest 3 years | Highest 5 years |
| Full benefit | At 65, or any age with 30 years | At 65, or any age with 35 years |
| COLA cap | 4% a year | 2.5% a year |
| You pay | Nothing (Noncontributory) | 1.3% of pay from July 1, 2026 |
| Partial lump sum | 12 or 24 months | Not available |
The Tier 2 Defined Contribution Plan has no pension at all. See Hybrid or DC?
What the sources say
- Utah public school teachers and most school employees are covered by Utah Retirement Systems (URS) in the Public Employees systems. Which one depends on when you first started full-time work with a URS employer.Tier 1 Highlights (2026-27), pp. 1-2; Tier 2 Highlights (2026-27), p. 1
- If you initially began full-time employment with a URS participating employer before July 1, 2011, you're Tier 1 (for most school employees, the Tier 1 Noncontributory System). If you started on or after July 1, 2011 with no Tier 1 service credit from before that date, you're Tier 2.Tier 1 Highlights (2026-27), p. 2; Tier 2 Highlights (2026-27), p. 4; Utah Code 49-22-201(2)(a)
- Tier 2 members choose the Tier 2 Hybrid Retirement System (a pension plus a 401(k)) or the Tier 2 Defined Contribution Plan (401(k) only) within one year of their employment date. You can switch as often as you like during that year; then the choice is permanent, including for later URS jobs. If you don't choose, you're in the Hybrid.Tier 2 Highlights (2026-27), pp. 1, 6; Comparing Tier 2 Plans (2026-27), p. 13
- Check with URSURS's 2025 actuarial valuation says Tier 2 employees must elect 'within their first 30 days after employment'. URS's 2026-27 member booklets say one year. We follow the booklets.URS's own documents disagree on the deadline. Ask URS when you're hired.URS Actuarial Valuation (Jan. 1, 2025), App. 2, p. 116; Tier 2 Highlights (2026-27), p. 6
- To be a member you must work an average of 20 or more hours a week (or teach half-time or more) and receive the benefits your employer normally provides.Tier 1 Highlights (2026-27), p. 2; Tier 2 Highlights (2026-27), p. 4
The 2026-27 Highlights and Comparing Tier 2 Plans say you have one year from your employment date to choose Hybrid or DC (switching as often as you like during that year). The Jan. 1, 2025 actuarial valuation says employees 'are required to make an election within their first 30 days after employment', irrevocable one year after employment. Utah Code 49-22-201(2)(c) makes the election irrevocable one year from eligibility. We follow the Highlights (one year).
Tier 2 Highlights (2026-27), pp. 1, 6; Comparing Tier 2 Plans (2026-27), p. 13; URS Actuarial Valuation (Jan. 1, 2025), App. 2, p. 116, item 5; Utah Code 49-22-201(2)(c)
Not covered here
- Tier 1 Public Employees Contributory Retirement System. Some Tier 1 members are in the Contributory System instead (6% member contributions, 2% formula after July 1, 1975 and 1.25% before, highest-5 average). The employer's choice decided which Tier 1 system new employees joined; both closed to people hired on or after July 1, 2011. Members who transferred from Contributory to Noncontributory keep their contributions (which is what makes Option Two available). This calculator covers the Noncontributory System only. URS Actuarial Valuation (Jan. 1, 2025), App. 2, pp. 96-97; URS Employer Guide, Tier 1 Summary of Benefits by System; Tier 1 Highlights (2026-27), pp. 11-12, 18
- Higher education TIAA or other authorized plans. Employees of a two-year or four-year college or university who hold a TIAA retirement annuity contract (Tier 1), or who are covered by TIAA or other authorized providers (Tier 2), are not eligible for URS service credit. Tier 1 Highlights (2026-27), p. 3; Tier 2 Highlights (2026-27), p. 6; Utah Code 49-13-204, 49-22-204
- Public Safety and Firefighter systems. Public safety and firefighter employees have separate Tier 1 and Tier 2 systems with different ages, multipliers and COLAs. Not covered here. Comparing Tier 2 Plans (2026-27), pp. 6-7, 12; Tier 1 Retirement Guidebook (Sept. 2026), p. 1
Next: the benefit formula, or try the calculator.
Questions
What's the difference between URS Tier 1 and Tier 2?
It depends on when you first started full-time work with a URS employer. Before July 1, 2011: Tier 1, a 2% pension on your highest 3 years. On or after: Tier 2, where you choose a 1.5% Hybrid pension plus 401(k) or a 401(k)-only plan.
Do Tier 1 teachers contribute to URS?
Not in the Tier 1 Noncontributory System: your employer pays the whole cost.
Do Tier 2 Hybrid members contribute?
Your employer pays up to 10% of pay toward the Hybrid. From July 1, 2026 the pension costs 11.3%, so you pay the other 1.3%.
Source: URS Tier 1 Noncontributory and Tier 2 Public Employees Retirement System Highlights, 2026-27, effective July 1, 2026, Tier 1 pp. 1-2, 15, 20, 22; Tier 2 pp. 1, 2, 3, 4, 6, 15-16, 21. Also: Comparing Tier 2 Plans (2026-27); URS Actuarial Valuation (Jan. 1, 2025); URS Employer Guide; Utah Code §§ 49-11-1001, 49-13-102, 49-13-301, 49-13-402, 49-13-407, 49-22-102, 49-22-201, 49-22-301, 49-22-303, 49-22-305, 49-22-308, 49-22-401. Last reviewed .