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
2.5% X $4,590 X 18 X .6413 = $1,325
PSRS Age-Reduced calculation

Benefit Formula Components

  • The Benefit Factor is set by law. For Age-Reduced early retirement, the benefit factor is 2.5%.
  • Final Average Salary is a monthly average of your three highest consecutive years of PSRS-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 PSRS.
  • 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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