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 FactorXFinal Average SalaryXYears of ServiceXAge-Reduction Factor=Lifetime Single Life Benefit
PSRS Age-Reduced Benefits 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 »

You might also be interested in ...