Your monthly retirement benefit is calculated using the following formula:
Average Final Compensation (AFC) is the monthly average of your 60 consecutive highest-paid service credit months. AFC does not include payments for any type of severance pay, such as lump-sum payments for deferred sick leave, vacation or annual leave.
Suppose you retire at age 60 with 20 service credit years. Your average final compensation is $3,500. Your monthly retirement benefit will be $1,400.
2% × 20 years × $3,500 = monthly benefit
2% × 20 years = .40
.40 × $3,500 = $1,400
This calculation results in the standard benefit. It will be lower if you choose to continue benefits to a survivor upon your death. See a description of your benefit options.
If your monthly benefit will be less than $50, you may choose to take payment in a lump sum. To determine the lump sum, the projected value of your lifetime benefit will be compared to the total of your contributions plus interest. The greater amount will be paid to you. Anyone receiving such a payment is considered retired from PSERS. Only members who retire early for disability, have minimal service credit, or retire as dual members are likely to receive this payment.