Benefit Formula

There are several factors used to determine your retirement benefit. First we consider your length of service. Then we calculate your high-five average salary, using your highest five consecutive years of salary. We take your years and months of service and convert these to a percentage using a formula.

  • if first hired before July 1, 2010, you receive 2.4% for each year of service.

  • If first hired after June 30, 2010, you receive 2.2% for each year of service.


Example of how we calculate your full retirement benefits using a formula:
 

The assumptions (hire date before 7/1/2010)

  Age at retirement

  55

  Allowble service

  25 years

  Average monthly salary

  $3,529

  Benfit payment option

  Single-Life

The calculation

   25 years x 2.4% = 60%

   $3,529 (your average monthly salary)
     x 60%
    $2,117.40 month

 

Full retirement benefit
Full retirement age is 55. This means if you retire at age 55, there is no reduction in your monthly benefit.

 

Early retirement reduction
If you retire before full retirement age, your monthly benefit is reduced by an early retirement factor. For more information, see the Correctional Employees Retirement Handbook or call  MSRS at 651-296-2761 or 1-800-657-5757.