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Retirement Eligibility

Retirement Eligibility and Average Monthly Compensation

Members can retire with a lifetime benefit as early as age 50 once they have acquired 5 years of service credits. Because retirement benefits are based on "normal" retirement rules, a member who takes an early retirement will receive a reduced benefit for their lifetime. When a member reaches normal retirement before filing for retirement, then they receive full benefits once a completed retirement application is filed and the desired retirement date is reached.

The ASRS calculates your average monthly 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.

Changes in law over time

Membership Date:Prior to 1/1/19841/1/1984 through 6/30/20117/1/2011 or later

NORMAL
A.R.S. 38-711(27)

80 Points
62 + 10 years
65

80 points
62 + 10 years
65

55 + 30 years
60 + 25 years
62 + 10 years
65
EARLY
A.R.S. 38-758
50 + 5 years50 + 5 years50 + 5 years
Average Monthly Compensation (AMC) Calculation Used

AMC=36 or 60 months, whichever is highest

Note: 60 month calculation includes termination pay (see below)

AMC=36 months

Note: 36 month calculation excludes termination pay (see below)

AMC=60 months

Note: 60 month calculation excludes  termination pay (see below)

Average Monthly Compensation (AMC)

36 MonthsAll Membership Dates prior to July 1, 2011 [A.R.S. §38-711 (5.b)]:
  • Calculated by taking the highest consecutive 36 months of contributions within the last 120 months of contributions reported to the ASRS, which could span more than 10 calendar years.
  • Termination Pay is excluded.
60 MonthsMembership Date prior to January 1, 1984 [A.R.S. §38-711 (5.a)]:
  • Calculated by taking the highest consecutive 60 months of contributions within the last 120 months of contributions reported to the ASRS, which could span more than 10 calendar years.
  • Payments made as a result of termination of employment (Termination Pay) such as vacation/annual leave, sick leave, termination incentive payments, etc., are included in the calculation, with exceptions.
Membership Date on or after to July 1, 2011 [A.R.S. §38-711 (5.c)]:
  • Calculated by taking the highest consecutive 60 months of contributions within the last 120 months of contributions reported to the ASRS, which could span more than 10 calendar years.
  • Termination pay is excluded.
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