The Benefit Formula Explained

Mar 21, 2024, 16:00 PM
Benefit Formula

If you are a general state employee (including college and university employees), you may be wondering how your monthly base benefit* is calculated at retirement. The answer is easier than you think!

MOSERS uses a three-part formula to calculate your monthly base benefit. This formula, as defined by law, considers the following factors:

  • Final Average Pay (FAP) – The average of your highest 36 consecutive months of compensation.
  • Multiplier – A number established by the legislature (1.6% or 0.016 for MSEP; 1.7% or 0.017 for MSEP 2000 and MSEP 2011).
  • Credited Service – Your years and months of credited service earned, purchased, or transferred, and unused sick leave (if applicable).

Learn more about the benefit formula breakdown in the Summary of Pension Benefit Provisions (All Plans) and by plan on our website: MSEP, MSEP 2000, and MSEP 2011.

You can also generate a benefit estimate by logging in to myMOSERS or contacting a MOSERS benefit counselor.

*Base benefit is the amount before any reductions, taxes, or other deductions.

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