Benefit Calculation

You can begin to collect retirement benefits anytime after you terminate public service and reach age 55. If you are not yet age 55 when you end your state service, you can keep your money in the Unclassified Plan, continue to manage your account, and collect monthly benefits at age 55 or later.

The Unclassified Plan provides a lifetime benefit. It guarantees that your account value at the time you begin to receive benefits will be paid to you, your survivor, or your beneficiaries. For example, if your account value is $100,000 and you die after receiving $50,000 in benefits, the remaining $50,000 would be payable to your beneficiary.

 

How your benefit is calculated
Two factors are used to determine your monthly retirement benefit: your age at retirement and your account value. The account value includes your contributions, your employer contributions and investment gains or losses.

A "retirement factor" based on your age at retirement is used to compute your benefit. We divide this factor by the account balance to determine your monthly benefit. Log into your account online to calculate an estimate of your benefit or call our office to request an estimate.

Example of how we calculate your full retirement benefit:

  The assumptions:

age at retirement is 64 and account value is $200,000

 
   The calculation:

$  200,000
  
÷ 11.707  (retirement factor)
$    17,084 (annual retirement benefit)

      
÷     12 months
      $1,424 per month