Retirement Formula
Sample Benefit Calculations
The benefit estimate calculation questions and sample calculations of each available benefit type, including the Optional Forms of Benefits for service/vested retirement, are for informational purposes only.
If you are interested in obtaining an estimate of your benefit, please write us an email or a letter with the following information:
- Name
- Address
- Phone Number
- Email Address
- Date of Birth
- Date of Hire
- Anticipated Date of Retirement
- Include DROP Estimate (y/n)
- Marital Status*
- Spouse's Date of Birth
- Beneficiary Name*
- Beneficiary Date of Birth*
- Relationship to Beneficiary*
* For calculation of Optional Forms of Benefits
NOTE: If you are requesting a calculation of the Optional Forms of Benefits and you are married, but your beneficiary is someone other than your spouse, you will also need to provide your beneficiary’s date of birth.
Estimate of Retirement Benefits (Basic Retirement Benefit Only)
If You Retire NOW
- Estimate your current high 3 years of earnable compensation: $__________
- Determine your current “high 3 average” by dividing the dollar in Step 1 by 3: $__________
- From the chart below select the percentage multiplier which agrees with your current years of service: __________%
- Multiply the percentage (Step 3) times the dollar amount indicated in Step 2: $__________ This is your estimate of the benefit if you retire now.
If You Retire LATER
- Estimate your future high 3 years of earnable compensation: $__________
- Determine your current “high 3 average” by dividing the dollar in Step 1 by 3: $__________
- From the chart below select the percentage multiplier which agrees with the years of service you will have at the future retirement date: __________%
- Multiply the percentage (Step 3) times the dollar amount indicated in Step 2: $__________ This is your estimate of the benefit if you retire at the future date.
Service Multiplier Chart
| Years of Service* | Multiplier % |
| 22 | 66 |
| 23 | 68 |
| 24 | 70 |
| 25 | 72 |
| 26 | 74 |
| 27 | 76 |
| 28 | 78 |
| 29 | 80 |
| 30+ | 82 |
* If less than 22, multiply the number of full years by 3% for each year.
Examples of Benefit Calculations
Service Retirement
Earnable Compensation for Highest 3 Years (by Quarterly Pay Period)
| Time Period | Earnable Compensation |
| Year 1 | $82,041 |
| Year 2 | $84,176 |
| Year 3 | $89,916 |
| Total | $256,133 |
Total Final Earnable Compensation divided by 36 produces the average monthly final compensation: $256,133 ÷ 36 = $7,115
Benefit Amount
A monthly pension which equals 66% of the monthly average final compensation plus any additional credits for years of service over 22 (multiplied by 2.0%)
| Total Years of Service = 28 | |
| Years of Service (22) | 66% |
| Years of Service over 22 | |
| 6 years of service over 22 x 2.0% | 12% |
| Total Multiplier: | 78% |
| High 3 years of Earnable Compensation: | $7,115 |
| Multiplied by percentage: | 78% |
| Monthly Benefit: | $5,550 |
Optional Forms of Payment (Service/Vested Retirement Only)
| Benefit Type | Benefit Amount |
| 1. Basic Benefit | $5,550 |
| 2. Joint & 75% Survivor | $5,326 |
| 3. Joint & 75% Survivor w/ Pop-up | $5,245 |
| 4. Joint & 100% Survivor | $5,120 |
| 5. Joint & 100% Survivor w/ Pop-up | $5,020 |
| 6. Single-Life Annuity w/ Lump Sum | $3,030 |
| 7. Straight-Life Annuity | $6,059 |
Optional Forms of Payment Variables Used in Example
| Member’s Age | 59 |
| Beneficiary’s Age | 58 |
| Designated Lump Sum | $1,369,000 |
| Years of Service | 28 |
Accidental Disability Retirement
Earnable Compensation for Highest 3 Years (by Quarterly Pay Period)
| Time Period | Earnable Compensation |
| Year 1 | $82,041 |
| Year 2 | $84,176 |
| Year 3 | $89,916 |
| Total | $256,133 |
Total Final Earnable Compensation divided by 36 produces the average monthly final compensation: $256,133 ÷ 36 = $7,115
Benefit Amount
A monthly pension which equals 60% of the monthly average final compensation
| High 3 years of Earnable Compensation: | $7,115 |
| Multiplied by percentage: | 60% |
| Monthly Benefit: | $4,269 |
Alternate Benefit
The disability pension will be based upon the service retirement benefit formula, if that formula results in a higher benefit amount.
Ordinary Disability Retirement
Earnable Compensation for Highest 3 Years (by Quarterly Pay Period)
| Time Period | Earnable Compensation |
| Year 1 | $82,041 |
| Year 2 | $84,176 |
| Year 3 | $89,916 |
| Total | $256,133 |
Total Final Earnable Compensation divided by 36 produces the average monthly final compensation: $256,133 ÷ 36 = $7,115
Benefit Amount
A monthly pension which equals 50% of the monthly average final compensation
| High 3 years of Earnable Compensation: | $7,115 |
| Multiplied by percentage: | 50% |
| Monthly Benefit: | $3,558 |
Alternate Benefit
The disability pension will be based upon the service retirement benefit formula, if that formula results in a higher benefit amount.
Accidental Death Benefit (Work Related)
Earnable Compensation for Highest 3 Years (by Quarterly Pay Period)
| Time Period | Earnable Compensation |
| Year 1 | $82,041 |
| Year 2 | $84,176 |
| Year 3 | $89,916 |
| Total | $256,133 |
Total Final Earnable Compensation divided by 36 produces the average monthly final compensation: $256,133÷ 36 = 7,115
Benefit Amount
For surviving spouse: A monthly pension which equals 50% of the monthly average final compensation. Note: A surviving spouse minimum is applicable in this situation.
| High 3 years of Earnable Compensation: | $7,115 |
| Multiplied by percentage: | 50% |
| Monthly Benefit: | $3,558 |
For each child (as defined by statute): A monthly pension which equals 6% of the average earnable compensation of an active member of the System, as reported by the actuary:
| Avg active member monthly compensation: | $7,493 |
| Multiplied by percentage: | 6% |
| Monthly Benefit: | $450 |
Ordinary Death Benefit (Non-Work Related)
Earnable Compensation for Highest 3 Years (by Quarterly Pay Period)
| Time Period | Earnable Compensation |
| Year 1 | $82,041 |
| Year 2 | $84,176 |
| Year 3 | $89,916 |
| Total | $256,133 |
Total Final Earnable Compensation divided by 36 produces the average monthly final compensation: $256,133 ÷ 36 = $7,115
Benefit Amount
For surviving spouse: A monthly pension which equals 40% of the monthly average final compensation. Note: A surviving spouse minimum is applicable in this situation.
| High 3 years of Earnable Compensation: | $7,115 |
| Multiplied by percentage: | 40% |
| Monthly Benefit: | $2,846 |
For each child (as defined by statute): A monthly pension which equals 6% of the average earnable compensation of an active member of the System, as reported by the actuary:
| Avg active member monthly compensation: | $7,493 |
| Multiplied by percentage: | 6% |
| Monthly Benefit: | $450 |
Death Benefit After Retirement (Excludes Optional Forms of Payment)
Descendant’s Monthly Benefit Amount = $5,550
Benefit Amount
For surviving spouse, if the member retired under the basic formula: A monthly pension which equals 50% of the monthly benefit amount of the deceased member.
| Retiree's Monthly Benefit: | $5,550 |
| Multiplied by percentage: | 50% |
| Spouse’s Monthly Benefit: | $2,775 |
For each child (as defined by statute): A monthly pension which equals 6% of the average earnable compensation of an active member of the System, as reported by the actuary:
| Avg active member monthly compensation: | $7,493 |
| Multiplied by percentage: | 6% |
| Monthly Benefit: | $450 |
Surviving Spouse Minimum (Basic Benefit Only): A monthly pension that equals 20% of the average earnable compensation of the active membership of the System, as reported by the actuary.
| Avg active member monthly compensation: | $7,493 |
| Multiplied by percentage: | 20% |
| Monthly Benefit: | $1,499 |
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