Minimum Formula Annuity

An employee is eligible for a Minimum Formula Annuity if he or she withdraws from service with:

• At least 30 years of service credit and attains age 50, or
• At least 20 years of service credit, and attains age 55, or
• At least 10 years of service credit, and attains age 60.

The Minimum Formula Annuity is calculated by utilizing a combination of service credit, age and salary. This type of annuity is based upon your number of years of service multiplied by an accrual rate of 2.4% up to a maximum limit of 80% of your highest Final Average Salary.

Age is the primary factor which determines if an employee is eligible to retire. Age also affects the final annuity amount in cases where an employee retires early. If an employee retires prior to age 60 with less than 25 years of service, the annuity is discounted 0.25% for each month that the employee is under age 60. If you have 30 years of service, you can retire at age 50 without being discounted. If you retire on or after age 55 and have 25 years of service, you will also not be discounted.

Your monthly pension is calculated using the following formula:

Service Years X 2.4% accrual factor (if applicable) X Monthly FAS X Age Discount (if applicable)