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Standard Annuity

The standard annuity option is the highest monthly payment available to you for your retirement payments. The standard annuity option stops when you pass away. If there is money left in your account after your death, your beneficiary receives a one-time lump sum payment.

Some employees can qualify for a lifetime retirement annuity with as little as five years of service credit. With 10 years of service credit, health insurance benefits may be available. The longer you work for the state, the greater the benefits in retirement.

Final average salary

Your standard annuity calculation begins with your final average salary. You can determine this by adding up your highest 36 months of salary and dividing that number by 36. If your hire date was on or after September 1, 2009, you’ll want to use more months:

  • Group 1 (hired before September 1, 2009 and left your account at ERS) we use the average of your highest 36 months of salary.
  • Group 2 (hired on or after September 1, 2009) we use the average of your highest 48 months of salary.
  • Group 3 (hired on or after September 1, 2013) we use the average of your highest 60 months of salary.

The calculation of average salary includes base pay, longevity pay, Benefit Replacement Pay (BRP) and hazardous duty pay, if applicable.

Service percentage or multiplier

Every year you work, you get 2.3% of your final average salary. We call this your service percentage.

Example: If Pat retires with 28 years of service credit. Pat will receive 64.4% of his final average salary. (28 x 2.3% = 64.4%)

Remember: Withdrawn service does not count toward your service credit unless you have purchased it.

Standard annuity

Finally, multiply your final average salary by your service percentage. This provides your monthly standard payment. Your standard annuity cannot be more than 100% of your final average salary.

Example: If Pat retires with a final average salary of $3,000 with 28 years of service credit (64.4% - service percentage), Pat will receive a gross standard annuity amount of $1,932 per month.

3,000 x 64.4% = 1,932