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 consecutive years of salary. We take these two pieces and apply it to a benefit multiplier, which can be either a Level or Step Formula.     

LEVEL FORMULA

Hire date: July 1, 1989 or after

Benefit multiplier: You receive 1.7% for each year of service. Here is an example of how we calculate the benefit using the Level formula. This example assumes the member is retiring at 66 (full retirement age). If the member retired prior to age 66, the monthly benefit would be reduced.

Age at retirement

66

Allowable service

25 years

Average monthly salary

$3,529

Benefit payment option

Single-life

The calculation

25 years x 1.7% = 42.5%

$3,529 (your average monthly salary)
x 42.5%
$1,500 per month

Full retirement: Vested members are eligible for an unreduced retirement benefit at age 66.

Early retirement reduction: If you retire before full retirement age, your monthly benefit is reduced because you will collect the benefit for a longer period of time. The reduction is designed to generate the same value of retirement benefits you receive, regardless of your age at retirement.

STEP FORMULA

Hire date: Before July 1, 1989. Your retirement benefit is calculated using either the Step formula or Level formula, whichever provides a higher monthly retirement benefit. The Step formula is used most frequently for employees who retire under the Rule of 90 or who are under age 63. 

Benefit multiplier: You receive 1.2% for the first 10 years of service, and 1.7% for each year after that. Here is an example of how we calculate the factor for a member who has 30 years of service:

1.2 x 10 years = 12% (first 10 years of service)

1.7 x 20 years = 34% (remaining 20 years of service)

12% + 34% = 46%

Full retirement: Vested members are eligible for an unreduced retirement benefit:

  • at age 65.
  • if your age and years of service total 90 or more (Rule of 90). For example, if you are age 60 with 30 years of service, you would qualify for Rule of 90.
  • at age 62, with 30 years of service

Early retirement reduction: If you retire before full retirement age, your monthly benefit is reduced because you will collect the benefit for a longer period of time. The reduction is designed to generate the same value of retirement benefits you receive, regardless of your age at retirement.

  • Monthly benefit is reduced by 3% for each year an employee retires prior to age 65.
  • If 30 or more years of service: benefits are reduced by 3% for each year under age 62. For example, if retiring at age 58, the benefit would be reduced by 12% (4 years X 3% ).
  • If Rule of 90, there is never a reduction in monthly benefits, regardless of age at retirement.