Calculating Benefits

Normal (Full) Service Retirement Benefits

Normal, or full, retirement benefits are calculated using this formula:

Benefit Factor X Final Average Salary X Years of Service = Lifetime Single Life Benefit
1.61% X $2,550 X 30 = $1,231
PEERS normal benefit calculation

Temporary Benefits

If you have at least 30 years of service or qualify for Rule of 80, you will have an additional .8% temporary benefit added to the base formula for normal retirement benefits until you reach minimum Social Security age, currently 62.

Benefit Factor X Final Average Salary X Years of Service = Lifetime Single Life Benefit
1.61% X $2,550 X 30 = $1,231
.8%* X $2,550 X 30 = $612
Total Monthly Benefit Until Age 62 $1,843
Total Lifetime Monthly Benefit At or After Age 62 $1,231
PEERS Full-retirement Temporary Benefit Calculation formula

Benefit Formula Components

  • The 1.61% Benefit Factor is set by law and is permanent.
  • 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 and purchased.
  • 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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