Calculating Benefits

Normal (Full) Service Retirement Benefits

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

Benefit FactorXFinal Average SalaryXYears of Service=Lifetime Single Life Benefit
1.61%X$2,550X30=$1,231

Temporary Benefit

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 FactorXFinal Average SalaryXYears of Service=Lifetime Single Life Benefit
1.61%X$2,550X30=$1,231
.8%*X$2,550X30=$612
Total Monthly Benefit Until Age 62$1,843
Total Lifetime Monthly Benefit At or After Age 62$1,231
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