Benefit Calculation – Level 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 these two pieces and apply it to a benefit formula – called the Level formula - to determine your retirement benefit.     

Hire date determines the benefit formula

First became a member of the General Plan . . .  Formula used to calculate the retirement benefit
 July 1, 1989 of after Level formula
 Before July 1, 1989 Level formula or Step formula, whichever provides a higher monthly retirement benefit.

Calculating your retirement benefit
Under the Level formula, you receive 1.70% 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, which is full retirement age. If the member retired prior to age 66, the monthly benefit would be reduced.

Age at retirement


Allowable service

25 years

Average monthly salary


Benefit payment option


The calculation

25 years x 1.7% = 42.5%

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


Early retirement reduction
If you retire before full retirement age, your monthly benefit is reduced because you will be collecting 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.

For more detail
For more information about the Step formula, please contact MSRS at 1-800-657-5757, or see the General Employees Retirement Plan Handbook