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 Percentages of Average Final Compensation
- Approximate Option A Monthly Benefit at Retirement
- Payment Plans at Retirement
Service Retirement Benefit Formula
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) for Class II service or by 1.45 percent (.0145) for Class I service.
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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 annual retirement benefit
$12,740 ÷ 12 = $1,061.67 standard monthly benefit
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).
Approximate Percentage of Average Final Compensation at Retirement
The following chart displays the annual approximate percentage of AFC paid as a monthly benefit based on the standard benefit payment plan (Option A). Choosing options B or C to provide a future benefit for beneficiaries will reduce the amount of your monthly benefit.
| Service and Age | Percentage | Type of Benefit |
| 25 years at age 55 | 40% | Reduced early retirement |
| 26 years at age 55 | 44% | Reduced early retirement |
| 27 years at age 55 | 46% | Reduced early retirement |
| 28 years at any age | 51% | Normal retirement |
| 29 years at any age | 53% | Normal retirement |
| 30 years at any age | 55% | Normal retirement |
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.