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How is the Benefit Formula Calculated?

Oct 24, 2024, 15:27 PM by MOSERS
Can you please send information on how the retirement is calculated?

For general state employees, MOSERS uses a three-part formula to calculate your monthly base benefit. This formula, as defined by law, includes 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).
 

Examples - Using the multiplier for MSEP 2000 or MSEP 2011 retirees:

$3,000 (FAP) x 0.017 (Multiplier) x 15 years (Credited Service) = $765 monthly base benefit

$3,500 (FAP) x 0.017 (Multiplier) x 17.5 years (Credited Service) = $1,041.25 monthly base benefit

$4,000 (FAP) x 0.017 (Multiplier) x 30 years (Credited Service) = $2,040 monthly base benefit

$_____ (FAP)   x   ____ (Multiplier)   x    ____ years (Credited Service)   =   $_______ monthly base benefit

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

Learn more about the benefit formula breakdown in the Summary of Plan Benefits 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.

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