Calculation Formulas

Estimating Retirement Benefit Payments

Three factors impact the amount of your retirement benefit. They are your final average salary (FAS), your age at retirement and your years of service credit in the Traditional Pension Plan. While each factor is important, the more service credit you have, the greater your retirement benefit.

Final Average salary (FAS)

For members in age and service retirement transition groups A and B, your FAS is the average of your three highest years or the last 36 months of earnable salary while contributing to the Traditional Pension Plan.

For members in age and service retirement transition group C, your FAS is the average of your five highest years or the last 60 months of earnable salary while contributing to the Traditional Pension Plan.

Age and Service Retirement Benefit Formula

For members in retirement transition groups A and B, the retirement benefit calculated under the Traditional Pension Plan consists of an annual lifetime allowance equal to 2.2 percent of FAS, multiplied by the first 30 years of service plus 2.5 percent of FAS for each year, or partial year for service credit over 30.

For members in retirement transition group C, the retirement benefit calculated under the Traditional Pension Plan consists of an annual lifetime allowance equal to 2.2 percent of FAS, multiplied by the first 35 years of service plus 2.5 percent of FAS for each year, or partial year for service credit over 35.For all transition groups, the benefit cannot exceed 100 percent of the FAS or the limits set by the Internal Revenue Code. This base amount will be reduced if you retire before you reach age and service eligibility for an unreduced benefit.

Contribution Based Benefit Cap (CBBC)

OPERS will apply a contribution based benefit cap (CBBC) when calculating retirement benefits for members with a retirement effective date on or after Feb. 1, 2013. This is an anti-spiking provision which considers the member's career contributions and is designed to limit the amount of monthly benefit payments for those members whose benefits are out of proportion with their contributions.

The benefit cap is not intended to impact members who have had normal raises and promotions throughout their careers. It will, however, eliminate subsidization of benefits by those who spike their salary during their career. The cap will apply to all retirement transition groups.

The following formula will be applied to each member's career contributions to determine if the member's retirement benefit should be capped:

(Accumulated Contributions) X (Annuity Factor) X (CBBC factor) = Annual benefit

For members in retirement transition group A, any reduction caused by the cap may not exceed 5 percent of the retirement benefit the member would have otherwise received. This 5 percent limit does not apply if the member's earnable salary was less than $1,000.00 for any full month of service after Jan. 1, 1987.

Online Benefits Estimator

OPERS offers a Web-based benefit estimator you can use to run estimate scenarios yourself. If you are registered for online account access, you can log in and use the calculator pre-filled with data from OPERS' database. We encourage you to use the benefit estimator prior to filing your retirement application to determine the estimated amount of your benefit. If you have law enforcement service credit, public safety service credit, joint service credit with SERS or STRS or a DPO (Division of Property Order), you will need to call us to request an estimate.