Hampshire County Retirement System

How are Benefits 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.
  • Your reach your maximum age factor at age 65 (67) (i.e. age factor does not increase after age 65 (67)).
  • Years of full-time equivalent creditable service: This is to total number of years of creditable service you have accrued or purchased from service with any Massachusetts Public Employer. Creditable service is based on full-time equivalency. Part-time service may be 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 increased to age 55. If your actual age is 55 or older, the calculation uses your actual age factor.

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.

Appears in: General FAQ , Active Members