Leoff1:What is my service retirement benefit?

What is my service retirement benefit?

Eligibility, age and service requirements

Your service retirement benefit depends on your final average salary (FAS) and your service credit years at retirement. You are eligible to retire at age 50 if you have at least five years of service credit.

When you meet the age requirements retirement benefits are payable from the first day following your separation from service.

If you established membership in LEOFF on or after February 19, 1974, your service retirement benefit is limited to 60 percent of your FAS.

Note: Due to legislative action this 60 percent limit will no longer apply to retirements commencing on or after July 1, 2006.

Mandatory retirement

Some members are subject to the Plan’s provision for mandatory retirement at age 60. If your employer tells you that you must retire at age 60, call DRS immediately and ask for a copy of DRS Notice No. 83-001.

Benefit formula

The formula for your monthly service retirement benefit varies according to your length of service.

If you have fewer than 10 years of service:

Months of service credit ÷ 12 x 1 percent x Final average salary

If you have at least 10 but fewer than 20 years of service:

Months of service credit ÷ 12 x 1.5 percent x Final average salary

If you have 20 or more years of service:

Months of service credit ÷ 12 x 2 percent x Final average salary

Your final average salary is determined as follows:

If you have held the same position or rank for at least 12 months preceding retirement, it is the basic salary for that position or rank at the time of retirement.
If you have not held the same position or rank for at least 12 months, it is the monthly average of your highest-paid 24 consecutive months within your last 10 years of credited service.
If you are disabled, it is your basic salary at the time of disability retirement.
If you are a vested member who separated from employment before becoming eligible to retire, it is your basic salary at the time you left service.

EXAMPLE:

Service Retirement

Suppose you retire at age 50 with 26 years and 7 months (319 months) of service credit. Your final average salary is $4,500. Your monthly benefit will be $2,392.52.

Here is how it is calculated:

319 months ÷ 12 × 2.0% × $4,500

319 months ÷ 12 = 26.583 years

26.583 years × 2.0% = .53167

.53167 × $4,500 = $2,392.52

Benefits from a prior system

If you were working as a law enforcement officer or fire fighter before March 1, 1970, and you were making contributions to another retirement system in Washington, you retain your benefit rights under the prior system even though your membership was transferred to LEOFF. When you retire for service or disability, your benefit will be calculated in two ways:

As a member of LEOFF Plan 1, and
As a member of the prior system as though you did not transfer.

If your benefit under the prior system is greater than your benefit from LEOFF, you will receive your LEOFF entitlement from LEOFF and you will receive the excess from:

Your former employer; or
The Public Employees’ Retirement System (PERS), if your prior membership was in that system.