Age-Reduced Retirement Benefits are Calculated as Follows:
Final Average Salary |
X |
.0161 |
X |
Years of Credit |
X |
Age Reduction Factor |
= |
Option 1-Single Life Monthly Benefit |
Example (assuming member is age 55): $2,000 X .0161 X 15 X .6180 = $298
The age-reduction factor is based on your age at your PEERS retirement date.
| Age at Early Retirement | Approximate Age Reduction Factor |
|---|---|
55 |
.6180 |
56 |
.6786 |
57 |
.7461 |
58 |
.8214 |
59 |
.9056 |
Age-reduction factors are based on years and months, and are subject to change when certain actuarial assumptions are changed. Accurate reductions can only come from PEERS calculations.
Retirement benefits are based on a formula consisting of three factors:
1. Final Average Monthly Salary is determined by adding your three highest consecutive annual salaries (including board paid health, dental and vision insurance), and dividing the total by 36.
2. Applicable Formula Factor is set by the Missouri Legislature and based on a member’s age and/or years of credit.
3. Years of Credit include credit earned for PEERS-covered service and any credit you may have reinstated and/or purchased for other service, as permitted by law.
