Calculating Age-Reduced Service Retirement Benefits

Age-Reduced early retirement benefits are calculated using the formula in the following example. This example is for a 55-year-old with 13.9 years of service:

Benefit FactorXFinal Average SalaryXYears of ServiceXAge-Reduction Factor=Lifetime Single Life Benefit
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 »