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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