How Benefits Are Calculated
How is my benefit calculated?
Your retirement benefit is based on the following factors: AGE * CREDITABLE SERVICE * AVERAGE SALARY
- Age on date of retirement: Age factors are based on your age at your last birthday (i.e. in full years, not rounded up). If your birthday is January 1, and you are retiring on June 30, your age factor will be your age on January 1. Age factors increase incrementally on each subsequent birthday until you reach maximum age factor of 2.5% at age 55 (group 4), age 65 (membership prior to 4/2/2012), or age 67 (membership after 4/2/2012).
- Maximum age factor for all members is 2.5% (.025).
- Years of full-time equivalent creditable service: Creditable service is total number of years and full months of service you have accrued or purchased from/with any Massachusetts Public Employer. Creditable service is based on full-time equivalency of minimum 35 hours per week. Part-time service (less than 35 hrs/wk) is pro-rated.
- Average Salary (Regular Compensation)
- For Membership Prior to April 2, 2012, the average salary is your highest three consecutive years (36 months) of Regular Compensation.
- For Membership On or After April 2, 2012, the average salary is your highest five consecutive years (60 months) of Regular Compensation.
- Regular Compensation does not include non-regular payments such as overtime, stipends, bonus', non-regular pay, vacation/sick leave buyouts
Formula for a Superannuation (regular retirement) = Age factor times Years/Months Creditable Service = % Average Salary (Regular Compensation)
For an Ordinary Disability Retirement (non work-related), your retirement benefit is also based on factors of AGE * CREDITABLE SERVICE * AVERAGE SALARY similar to a Regular Retirement Benefit except that if your actual age is under 55, the age factor is used is increased to age 55. If your actual age is 55 or older, the calculation uses the age factor for your actual age.
For an Accidental Disability Retirement (work-related injury), your retirement benefit is based on your Salary on date of Injury and your total contributions. The calculation is 72% Salary plus an annuity based on your age and total contributions with a maximum of 75% Salary.