Age-Reduced Retirement Benefits are Calculated as Follows:

Final Average Salary

X

.025

X

Years of Credit

X

Age Reduction Factor

=

Option 1-Single Life Monthly Benefit

Example (assuming member is age 55):       $3,000 X .025 X 5 X .6315 = $237

If you work in a position affected by recent Social Security Administration and IRS rulings regarding Section 218 Agreements, and contribute to PSRS at two-thirds the full contribution rate, the calculation of your benefit amount will differ from that shown above.  Please contact our office for assistance in calculating your estimated monthly benefit.

The age-reduction factor is based on your age at your PSRS retirement date.

Age at Early Retirement	Approximate Age Reduction Factor
45	.2676
46	.2908
47	.3163
48	.3441
49	.3745
50	.4079
51	.4445
52	.4848
53	.5290
54	.5777
55	.6315
56	.6909
57	.7566
58	.8293
59	.9101

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 PSRS 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 PSRS-covered service after June 30, 1946, and any credit you may have reinstated and/or purchased for other service, as permitted by law.

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