How to Calculate Benefits
Active Members
The State-provided pension portion is determined by the following formula:
Average Annual Compensation X 1.1% [0.011] X Years of Service
A member retiring early receives a percentage of the State's pension portion, according to the following chart:
| Age | Percent of Benefit | Age | Percent of Benefit | |
|---|---|---|---|---|
| 59 | 89% | 54 | 64% | |
| 58 | 84% | 53 | 59% | |
| 57 | 79% | 52 | 54% | |
| 56 | 74% | 51 | 49% | |
| 55 | 69% | 50 | 44% |
Factors
The amount of retirement benefit is based on several factors:
- Average Annual Compensation: The average of the five highest years of annual compensation earned during a member's career plus a maximum of $2,000 of any amount received in contemplation of retirement.
- Benefit Multiplier: This figure is established by law (currently 1.1%)
- Years of Service: Number of creditable years served by a member
- Member's Age at Retirement: Early retirement will cause a reduction in the State pension portion (see above)
- Retirement Option Selected
- Annuity Savings Account balance
Two Benefit Examples
[See table following examples for an explanation of the annuity adjustment factors]
EXAMPLE ONE
EXAMPLE TWO
Exact annuity adjustment factors depend on age at retirement and are determined by the Fund's actuaries. The current annuity adjustment factors are as follows:
| Age | Factor | Age | Factor | Age | Factor |
|---|---|---|---|---|---|
| 50 | .0825 | 57 | .0883 | 64 | .0974 |
| 51 | .0832 | 58 | .0893 | 65 | .0992 |
| 52 | .0839 | 59 | .0905 | 66 | .1010 |
| 53 | .0847 | 60 | .0917 | 67 | .1030 |
| 54 | .0855 | 61 | .0929 | 68 | .1051 |
| 55 | .0864 | 62 | .0943 | 69 | .1073 |
| 56 | .0873 | 63 | .0958 | 70 | .1097 |
