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 18 years of service:
|Benefit Factor||X||Final Average Salary||X||Years of Service||X||Age-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 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 »