Step 1: Learn the calculation
The formula to calculate a retirement is quite simple.
Total Service Credit * Graded Multiplier * Average Monthly Compensation = Monthly Benefit
Use this simple tool to calculate a Straight Life Annuity option. This tool does not use any of your personal information. It gives you an idea of how the formula works and how the benefit changes as your age, compensation, and service credit increase. Have some fun with it!
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When did you first start contributing to ASRS? Before 7/1/2011 After 7/1/2011 |
Use the sliders to adjust the Estimated Benefit
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Note: yellow bars indicate an 'early retirement' reduction factor has been applied.
Service Credit
The more service you have accrued, the higher your retirement benefit. The ASRS credits service based on reported contributions from your ASRS-covered employers. Make sure all contributions have been reported by logging in to your secure account, and clicking 'Balances' under My Account. Service is awarded in the month in which contributions are reported to us, not necessarily in the month you worked.
Graded Multiplier
As you accrue more service, you qualify for a higher multiplier of your final average monthly compensation, which increases your benefit.
Average Monthly Compensation
The ASRS calculates your eligible compensation based contributions paid into your account, which are a percentage of your regular salary each pay period.
The method used to calculate your average monthly compensation is based on when you became an ASRS member.
Retirement Central
There is so much more to retirement than the basic ASRS benefit calculator. Find out how to leave benefits to a beneficiary, how health insurance and taxes impact your take-home benefit, how you can afford to retire and so much more in our dedicated section called 'Retirement Central'.
Step 2: Log in to get YOUR estimate
Log in to see your personalized estimate, including your latest projected retirement date and other retirement options such as term certain and survivor annuities, partial lump sum and health insurance premium benefits. When logged in, you can also view personalized benefit estimates for refund, long term disability, service purchase and survivor benefits.
Once logged in, click 'Retirement' under 'Your Benefit Estimates' to check and customize your own personalized estimate.
Wage Replacement Rates
The longer you work and accrue service credit, the closer your retirement benefit is to your final monthly salary. Multiplying your Years of Service by the appropriate multiplier will provide you with the percentage of your average monthly compensation that will be paid as a monthly retirement benefit.
As the table demonstrates, even if you spend a full career in public service, your retirement benefit will only be a fraction of the wages you received while working. In fact, the ASRS was designed to be only one of three savings methods used by public employees to save for retirement, with social security and personal savings being the other two forms of retirement savings.
PLEASE NOTE: This table assumes you are retiring under normal retirement criteria. If you retire early, an early retirement reduction factor will lower your monthly benefit.
Frequently Asked Questions
When can I retire?
Once you have reviewed the requirements for Retirement Eligibility, Log In to your account to view and customize your own personalized estimate.
Should I refund now, or should I wait to retire?
Is there a maximum compensation level that is applicable to my ASRS retirement account?
For this reason, these accounts are considered complex and only allow the ASRS to provide a very rough estimate of benefits. This limitation indicates that the ASRS cannot continue to receive contributions when the salary meets a certain amount each fiscal year.
The compensation limitations for fiscal year 2022, are $450,000 (Membership date before 07/01/1996) and $305,000 (Membership date Beginning 07/01/1996). This limitation is determined by the IRS and does not impact the service credit with the ASRS; however, it does mean that the ASRS must manually calculate the salary based on data confirmed by the employer. This process is completed through retirement processing. However, to complete a benefit estimate prior to retirement, the ASRS is only able to provide an estimation of the salary. It is important that ASRS establish with the members that this will be a rough approximation of the retirement benefit and it is not an income commitment. For a listing of current and historical maximum annual compensation IRS limits.
