Service Retirement - General Information
- Service Retirement Eligibility Requirements
- Correlated Systems
- Service Retirement Option A Benefit Formula
- Unused Leave at Retirement
- Your Average Final Compensation
- Approximate Option A Monthly Benefit at Retirement
- Payment Plans at Retirement
Service Retirement Benefit Formula-Class Two
If you are a Class Two member (membership effective prior to July 1, 2012), the following four-step formula is used to calculate your standard monthly benefit (Option A payment plan).
| Step 1 | Total your 12 highest consecutive quarters of earnable compensation and divide by 3.
The dollar amount of payment for up to 45 days of unused annual leave paid by your last employer at retirement may be included before averaging your 12 highest consecutive quarters of earnable compensation. The result of Step 1 is your average final compensation (AFC).
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| Step 2 | Multiply the result of Step 1 by 1.82 percent (.0182).
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| Step 3 | Multiply the result of Step 2 by years, months, and days of creditable service.
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Step 4 |
Divide the result of Step 3 by 12. |
Example
Average final compensation (AFC) = $25,000
Creditable retirement service = 28 years
$25,000 x 1.82% (.0182) = $455
$455 x 28 = $12,740
$12,740 ÷ 12 = $1,061.67 Option A monthly annuity
If your retirement is considered early based on either your age or years of creditable service, your benefit will be reduced.
If you are a Teacher and Employee Retention Incentive (TERI) program participant who retired on or after July 1, 2005, during your TERI deferral period, your unused annual leave will not be included in your monthly benefit calculation. However, your benefit will be recalculated prospectively upon termination of employment at the end of your TERI period and may include up to 45 days of unused annual leave paid at termination (end of TERI).
Service Retirement Benefit Formula-Class Three
If you are a Class Three member (membership effective after July 1, 2012), the following four-step formula is used to calculate your standard monthly benefit (Option A payment plan).
| Step 1 | Total your 20 highest consecutive quarters of earnable compensation and divide by 5.
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| Step 2 | Multiply the result of Step 1 by 1.82 percent (.0182).
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| Step 3 | Multiply the result of Step 2 by years, months, and days of creditable service.
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Step 4 |
Divide the result of Step 3 by 12. |
Example
Average final compensation (AFC) = $38,100
Member is age 60 with 30 years of service satisfying the rule of 90
$38,100 x 1.82% (.0182) = $693.42
$693.42 x 30 = $20,802.60
$20,802.60 ÷ 12 = $1,733.55 Option A monthly annuity
Approximate Amount of Option A Monthly Benefit at Retirement
The information in the table below is based on the standard monthly benefit payment plan (Option A). Choosing options B or C to provide a future benefit for beneficiaries (or retiring with SCRS early retirement reductions*) will reduce the amount of your monthly benefit.
AFC |
Years of Service |
Additional Monthly Benefit for Each Additional Year | |||||
| 25 | 26 | 27 | 28 | 29 | 30 | ||
| $ 15,000 | $ 569 | $ 592 | $ 614 | $ 637 | $ 660 | $ 683 | $ 23 |
| 20,000 | 758 | 789 | 819 | 849 | 880 | 910 | 30 |
| 25,000 | 948 | 986 | 1,024 | 1,062 | 1,100 | 1,138 | 38 |
| 30,000 | 1,138 | 1,183 | 1,229 | 1,274 | 1,320 | 1,365 | 46 |
| 35,000 | 1,327 | 1,380 | 1,433 | 1,486 | 1,539 | 1,593 | 53 |
| 40,000 | 1,517 | 1,577 | 1,638 | 1,699 | 1,759 | 1,820 | 61 |
| 45,000 | 1,706 | 1,775 | 1,843 | 1,911 | 1,979 | 2,048 | 68 |
| 50,000 | 1,896 | 1,972 | 2,048 | 2,123 | 2,199 | 2,275 | 76 |
| 55,000 | 2,085 | 2,169 | 2,252 | 2,336 | 2,419 | 2,503 | 83 |
| 60,000 | 2,275 | 2,366 | 2,457 | 2,548 | 2,639 | 2,730 | 91 |
| 65,000 | 2,465 | 2,563 | 2,662 | 2,760 | 2,859 | 2,958 | 99 |
| 70,000 | 2,654 | 2,760 | 2,867 | 2,973 | 3,079 | 3,185 | 106 |
| 75,000 | 2,844 | 2,958 | 3,071 | 3,185 | 3,299 | 3,413 | 114 |
| 80,000 | 3,033 | 3,155 | 3,276 | 3,397 | 3,519 | 3,640 | 121 |
| 85,000 | 3,223 | 3,352 | 3,481 | 3,610 | 3,739 | 3,868 | 129 |
| 90,000 | 3,413 | 3,549 | 3,686 | 3,822 | 3,959 | 4,095 | 137 |
| 95,000 | 3,602 | 3,746 | 3,890 | 4,034 | 4,178 | 4,323 | 144 |
| 100,000 | 3,792 | 3,943 | 4,095 | 4,247 | 4,398 | 4,550 | 152 |
| 105,000 | 3,981 | 4,141 | 4,300 | 4,459 | 4,618 | 4,778 | 159 |
| 110,000 | 4,171 | 4,338 | 4,505 | 4,671 | 4,838 | 5,005 | 167 |
*SCRS early retirement deductions apply if you retire with fewer than 28 years of service credit for Class Two members or at age 60 with at least eight years of earned service for Class Three members.