Benefit multiplier

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 years of salary.

We take these two pieces and apply it to a benefit multiplier, also known as a benefit formula, to determine your retirement benefit. The benefit formula is based a service-credit percentage and an aged-based factor.

SERVICE-CREDIT PERCENTAGE
Service years and months are converted to a percent of your average monthly salary.

  • Years served started January 1, 1979 and after - you receive 2.5% for each year of service.
  • Years served before January 1, 1979 - you receive 5% for each year up to eight years and 2.5% for each year over eight years.
     

Example of how we calculate your benefit:

The assumptions - first entered service 1/1/1985

Age at retirement

62

Allowable service

12 years

Average monthly salary

$3,083

 

The calculation

12 years x 2.5% = 30%

$3,083 (your average monthly salary)
X     30%

$925 computed monthly benefit*

*Please note: if you decide to end your legislative career and apply for retirement benefits prior to age 62, an early-retirement reduction will apply.

 

AGED-BASED FACTOR APPLIED
The computed benefit has an age-based factor applied, which was passed into law in 1997. This increases your benefit to compensate for slightly lower, future cost-of-living increases over your lifetime.

Example of how aged-based factor is applied:

The assumptions

Age at retirement

62

Allowable service

12 years

Average monthly salary

$3,083

Computed monthly benefit

$925 (calculated in above example)

Age-based factor

9.0% (currently)
9.6% (effective July 1, 2014)

 

The calculation

$925 x 8.7% = $80

$925 (your computed monthly benefit)
+  80 (your age-based factor)

$1,005 monthly benefit *

* Please note: if you end your legislative career and apply for retirement benefits prior to age 62, an early-retirement reduction will apply.