Determining Your Retirement Benefit

How Is Your Retirement Benefit Calculated?

Your retirement benefit is calculated by using the percentage of salary formula. Simply stated, two percent is multiplied by your years of creditable service, including partial years (not to exceed 40 years). This product is then multiplied by your average monthly salary for your two highest consecutive years of membership service. Your benefit calculation is based on the 24 highest consecutive months of membership service that produce the highest benefit, which may not be your last years worked. The salary used to calculate your benefit may be limited if increases in your salary are above what is allowed by Georgia law. Also, for those with membership dates 7/1/1996 and after, the IRS places a limit on the maximum annual benefit received under a defined benefit plan.

Nine or more months of service within a fiscal year will equal a full year of service credit. Likewise, salary earned for nine or more months of service within a fiscal year will equal a full year of salary for calculating retirement benefits. Members who work under the semester system will be awarded one-eighth year of service credit for each month of membership service.

The salary earned during any eight or more months will also constitute a full year of salary. Limitations are placed on salary earned and salary increases when calculating retirement benefits.

In the event you do not have credit for two years of service within the two-year period, additional salaried months of your work history will be included to complete two years of service. The resulting product (2% x service x salary) is your monthly retirement benefit under the Maximum Plan of retirement.

If you are more than 5 years from retirement, you may estimate your monthly benefit for service retirement using the Pension Calculator. You may use this calculator far in advance of your retirement to help you develop your personal retirement strategy by experimenting with various retirement scenarios.

If you are retiring within 5 years, you may use the benefit estimate generator that is available via your online TRS account. Once you establish your online account, you may generate benefit estimates using actual data from your TRS account.