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Calculate My Retirement

Glossary

Defined Benefit Retirement Plan (DBRP)
A DBRP guarantees a specified retirement benefit based on a percentage of your highest average compensation and your years of service credit. Your monthly benefit will be paid to you for your lifetime.

Early Retirement
For PERS covered positions, you are eligible for early retirement if you meet either of the following criteria:

    Hired prior to July 1, 2011
  • Age 50, with at least 5 years of membership service.
  • 25 years of membership service at any age.
    Hired on or after July 1, 2011
  • Age 55, with at least 5 years of membership service.
For early retirement, the amount of your service retirement benefit will be reduced by an early retirement factor (ERF) until October 1, 2011. The ERF depends upon how many years it will take you to reach age 60 or 30 years of membership service. The ERF that gives you the larger benefit will be used. Beginning October 1, 2011, the amount of your service retirement benefit will be reduced by existing actuarial factors based on the most recent valuation of the retirement system. If you were hired prior to July 1, 2011, the ERF will depend on your age at retirement or your years of membership service whichever gives you the larger benefit. If you were hired on or after July 1, 2011, the ERF will depend on your age at retirement.

NOTE: Members, who were hired prior to July 1, 2011, under age 50 with less than 25 years of membership service are not eligible for early retirement. Members, who were hired on or after July 1, 2011, under age 55 are not eligible for early retirement.


For GWPORS covered positions, you are eligible for early retirement if you meet the following criteria:
    5 years of membership service and 55 years of Age
If you terminate your GWPORS-covered employment after completing five years of membership service, but before reaching normal retirement age, you may file a written application with MPERA to be paid a retirement benefit when you reach age 55.

For SRS covered positions, you are eligible for early retirement if you meet the following criteria:
    50 years of age with at least 5 but less than 20 years of membership service
For early service retirement, the amount of your benefit is reduced by an early retirement factor (ERF). The ERF depends upon how many years it will take you to reach age 60 or 20 years of membership service. We will use the ERF that gives you the larger benefit.

For HPORS covered positions, you are eligible for early retirement if you meet the following criteria:
    5 years of membership service, at any age
For early retirement, the amount of your service retirement benefit will be reduced by an early retirement factor (ERF). The ERF depends upon how many years it will take you to reach age 60.

For MPORS or FURS covered positions, you are eligible for early retirement if you meet the following criteria:
    Age 50, with at least 5 years of membership service
For early retirement, the amount of your service retirement benefit will be reduced by an early retirement factor (ERF). The ERF depends upon how many years it will take you to reach age 60.


Highest Average Compensation (HAC)
For a member hired prior to July 1, 2011, the memberís highest average monthly compensation during any 36 consecutive months of membership service; for a member hired on or after July 1, 2011, the member's highest average monthly compensation  during any 60 consecutive months of membership service; or in the event a member has not served the minimum specified period of service, the total compensation earned divided by the months of membership service.  Lump-sum payments for severance pay, sick leave, banked holiday time, and annual leave may not be added to a single monthís pay. Your HAC may include termination payments, but only if they replace regular pay on a month for month basis.


Highest Average Compensation (HAC) Calculation
The Annual Salary, percent of Salary Increase and when you expect to terminate employment will be used to calculate your Highest Average Compensation (HAC).

EXAMPLE 1:
If you choose a Salary Increase of 0%, the calculator assumes your salary was unchanged for past years and will remain unchanged for future years. The Annual Salary you entered divided by 12 is the HAC used in your estimate.

EXAMPLE 2:
If you choose a Salary Increase > 0%, the calculator assumes your salary increased in past years and will increase in future years by the percent of salary increase that you entered. Your Highest Average Compensation (HAC) is calculated for the 3 years (36 months), if hired prior to July 1, 2011, or 5 years (60 months), if hired on or after July 1, 2011, prior to the termination information you entered using the Annual Salary and the percent of Salary Increase you entered.

Membership Service
The periods of service used to decide vesting and eligibility for retirement or other benefits. You get 1 month membership service for any month you contribute to the retirement system, even if you only work one day during that month. If you contribute anything, you get membership service for the whole month.

PERS Option 1
The benefit is computed using the defined benefit formula or the money purchase benefit formula. (The money purchase formula is not included within this estimate). If you retire early, then the early retirement factor will reduce your benefit. Members who choose Option 1 will receive the benefit for life. Upon the memberís death, the designated beneficiary will receive any balance left in the memberís account. That account balance is the amount available at retirement less the total benefits paid to the member. All monthly benefit payments end upon the retireeís death.

PERS Option 2
Members who choose Option 2 will receive a monthly benefit for life. Upon the memberís death, the member's contingent annuitant will receive the same monthly benefit for their lifetime.

PERS Option 3
Members who choose Option 3 will receive a monthly benefit for life. Upon the memberís death, the member's contingent annuitant will receive one half of the monthly benefit for their lifetime.

PERS Option 4
Members who choose Option 4 will receive a monthly benefit for life. Upon the memberís death, the member's contingent annuitant(s) will receive the monthly benefit for the applicable period certain.
10-Year Period Certain -- You must be age 75 or younger when you retire to be eligible for this benefit. If you die before the 10-year period ends, then your contingent annuitant(s) will receive the benefit for the remainder of the 10-year period. The 10-year period begins on your effective date of retirement.
20-Year Period Certain -- You must be age 65 or younger when you retire to be eligible for this benefit. If you die before the 20-year period ends, then your contingent annuitant(s) will receive the benefit for the remainder of the 20-year period. The 20-year period begins on your effective date of retirement.

SRS Option 1
The benefit is computed using the service retirement formula. If you retire early, then the early retirement factor will reduce your benefit. Members who choose Option 1 will receive the benefit for life. Upon the memberís death, the designated beneficiary will receive any balance left in the memberís account. That account balance is the amount available at retirement, less the total benefits paid to the member. All monthly benefit payments end upon the memberís death.

Service Credit
The periods in which you contribute the required money to the retirement system. The MPERA uses service credit to calculate the amount of your benefit. If you work 160 hours or more in any month, you get 1 month of service credit. If you work less than 160 hours, you will receive credit for a partial month. For example, if you work 80 hours, you receive ½ of a month of service credit. The Retirement Calculator only calculates estimates based on full months of Service Credit. A partial month of service credit will be ignored.

Service Purchase
Eligible members may purchase various types of membership service and service credit. Please refer to the appropriate Member Handbook for details: Member Handbooks.

You must be vested (have five years of membership service) to purchase the following types of service:

Current law limits the purchase of active military, reserve military, "One-for-Five", and "other" public service to a combined total of five years, but it can be any combination of the above service.
PERS Service Purchase Types GWPORS Service Purchase Types HPORS Service Purchase Types SRS Service Purchase Types MPORS Service Purchase Types FURS Service Purchase Types


PERS Service Purchase Types

Military Service
At any time prior to retirement, you may purchase up to five years of your active military or reserve military service at the actuarial cost. Reserve military service may include service in the Army or Air National Guard. You may purchase reserve military time prior to your separation from the services in the reserves.

You may not purchase military time if you are receiving a retirement benefit from the military, or from another retirement system or plan, for that time. Reserve military service may not be purchased if you have already received service credit under USERRA for that time period.

This service is both membership service and service credit.
"One-for-Five" Service
For each five-year period of membership service, you may buy one year of service credit. You may buy no more than five years of service. If you are eligible to buy one year, you may buy less than a full year.

The total service credit on your annual statement will not include the "One-for-Five" service purchased; however, it will be added to your service credit when MPERA calculates your retirement benefit.
Limitations:
For PERS covered positions with less than 25 years of membership service, "One-for-Five" service is not membership service and it cannot make you eligible to retire or to purchase other types of service. If you are a member of the PERS retirement system and meet the 25 year requirement for early retirement without the "One-for-Five" service, you can use that service to reduce or eliminate the early retirement reduction of your monthly benefit.
"Other" Public Service
Members with at least five years of membership service may purchase membership service and/or service credit for other public service such as:
  • Service covered by another state, local, or federal government retirement system. If you received a refund of your account with another system, you may buy up to five years of that service in PERS. You may also buy the service if it occurred before the employer adopted a public retirement system. You may not use this service to qualify you to buy military service. In addition, you may only count it as service credit if your last five years of service are with a PERS employer.
This service qualifies as both membership service and service credit.
Federal Volunteer Service
Members with at least five years of membership service may purchase membership service and/or service credit for other public service such as:
  • Volunteer service in a United States service program, such as the Peace Corps. You may also purchase any documented, successfully completed required term of service in the Americorps Vista, Americorps National Community Conservation Corps, or any other National and Community Service Act (NCSA) program that requires the volunteer to enroll for a specific term of service.
This service qualifies as both membership service and service credit.

GWPORS Service Purchase Types

Military Service
At any time prior to retirement, you may purchase up to five years of your active military or reserve military service at the actuarial cost. Reserve military service may include service in the Army or Air National Guard. You may purchase reserve military time prior to your separation from the services in the reserves.

You may not purchase military time if you are receiving a retirement benefit from the military, or from another retirement system or plan, for that time. Reserve military service may not be purchased if you have already received service credit under USERRA for that time period.

This service is both membership service and service credit.
"One-for-Five" Service
For each five-year period of membership service, you may buy one year of service credit. You may buy no more than five years of service. If you are eligible to buy one year, you may buy less than a full year.

The total service credit on your annual statement will not include the "One-for-Five" service purchased; however, it will be added to your service credit when MPERA calculates your retirement benefit.
Limitations:
For GWPORS covered positions, "One-for-Five" service is not membership service and it cannot make you eligible to retire or to purchase other types of service.

HPORS Service Purchase Types

Military Service
At any time prior to retirement, you may purchase up to five years of your active military or reserve military service at the actuarial cost. Reserve military service may include service in the Army or Air National Guard. You may purchase reserve military time prior to your separation from the services in the reserves.

You may not purchase military time if you are receiving a retirement benefit from the military, or from another retirement system or plan, for that time. Reserve military service may not be purchased if you have already received service credit under USERRA for that time period.

This service is both membership service and service credit.
"One-for-Five" Service
For each five-year period of membership service, you may buy one year of service credit. You may buy no more than five years of service. If you are eligible to buy one year, you may buy less than a full year.

The total service credit on your annual statement will not include the "One-for-Five" service purchased; however, it will be added to your service credit when MPERA calculates your retirement benefit.
Limitations:
For HPORS covered positions, "One-for-Five" service is not membership service and it cannot make you eligible to retire or to purchase other types of service.
"Other" Public Service
Members with at least five years of membership service may purchase membership service and/or service credit for other public service such as:
  • Out-of-state law enforcement service. You may purchase one year of out-of-state law enforcement employment for each year of service credit, up to a maximum of five years. You may not purchase the service if you are eligible to receive a retirement benefit in another system or plan for that same service.

    Note: This service may not be used as membership service to allow a member to purchase military service. In addition, it may not be used in calculating a memberís retirement benefit unless the last five years of service credit were earned in an HPORS-covered position.

SRS Service Purchase Types

Military Service
At any time prior to retirement, you may purchase up to five years of your active military or reserve military service at the actuarial cost. Reserve military service may include service in the Army or Air National Guard. You may purchase reserve military time prior to your separation from the services in the reserves.

You may not purchase military time if you are receiving a retirement benefit from the military, or from another retirement system or plan, for that time. Reserve military service may not be purchased if you have already received service credit under USERRA for that time period.

This service is both membership service and service credit.
"One-for-Five" Service
For each five-year period of membership service, you may buy one year of service credit. You may buy no more than five years of service. If you are eligible to buy one year, you may buy less than a full year.

The total service credit on your annual statement will not include the "One-for-Five" service purchased; however, it will be added to your service credit when MPERA calculates your retirement benefit.
Limitations:
For SRS covered positions, "One-for-Five" service qualifies as both membership service and service credit.

MPORS Service Purchase Types

Military Service
At any time prior to retirement, you may purchase up to five years of your active military or reserve military service at the actuarial cost. Reserve military service may include service in the Army or Air National Guard. You may purchase reserve military time prior to your separation from the services in the reserves.

You may not purchase military time if you are receiving a retirement benefit from the military, or from another retirement system or plan, for that time. Reserve military service may not be purchased if you have already received service credit under USERRA for that time period.

This service is both membership service and service credit.
"One-for-Five" Service
For each five-year period of membership service, you may buy one year of service credit. You may buy no more than five years of service. If you are eligible to buy one year, you may buy less than a full year.

The total service credit on your annual statement will not include the "One-for-Five" service purchased; however, it will be added to your service credit when MPERA calculates your retirement benefit.
Limitations:
For MPORS covered positions, "One-for-Five" service is not membership service and it cannot make you eligible to retire or to purchase other types of service.

FURS Service Purchase Types

Military Service
At any time prior to retirement, you may purchase up to five years of your active military or reserve military service at the actuarial cost. Reserve military service may include service in the Army or Air National Guard. You may purchase reserve military time prior to your separation from the services in the reserves.

You may not purchase military time if you are receiving a retirement benefit from the military, or from another retirement system or plan, for that time. Reserve military service may not be purchased if you have already received service credit under USERRA for that time period.

This service is both membership service and service credit.
"One-for-Five" Service
For each five-year period of membership service, you may buy one year of service credit. You may buy no more than five years of service. If you are eligible to buy one year, you may buy less than a full year.

The total service credit on your annual statement will not include the "One-for-Five" service purchased; however, it will be added to your service credit when MPERA calculates your retirement benefit.
Limitations:
For FURS covered positions, "One-for-Five" service is not membership service and it cannot make you eligible to retire or to purchase other types of service.

Termination of Employment or Termination of Service
A term used to mean the member quit, or ended employment covered by PERS. Upon termination, the member will cease to accrue benefits attributable to that employment. The member must receive a payout of sick and annual leave along with compensation.