Calculating Age-Reduced Service Retirement Benefits

Age-Reduced early retirement benefits are calculated using this formula:

Benefit Factor X Final Average Salary X Years of Service X

Age-Reduction Factor

= Lifetime Single Life Benefit
1.61% X $2,550 X 13.9 X .6317 = $360
PEERS Age-Reduced Benefit Calculation

Benefit Formula Components

  • The Benefit Factor is set by law. For Age-Reduced early retirement, the benefit factor is 1.61%.
  • Final Average Salary is a monthly average of your three highest consecutive years of PEERS-covered salary (including employer-paid health, dental and vision insurance premiums).
  • Years of Service includes the number of years of service you have earned, reinstated or purchased with PEERS.
  • The Age-Reduction Factor is based on your age in years and months, and is subject to change when actuarial assumptions change. View Age-Reduction Factors »
  • The Lifetime Single Life Benefit is the highest lifetime monthly benefit. It does not provide any monthly payments for your beneficiaries after your death. Learn more »

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