Pension Benefits • Benefit multiplier. This amount is 1.1 percent (0.011). It is used in the math formula to calculate your monthly pension benefit. • Average annual compensation (yearly salary). This is the average dollar amount of your 5 highest yearly salaries. These are salaries you received working in a covered position. More information about calculating your final average earnings is in Section 7.5 below. • Years of service. Service credit you earned while working. This may include purchased service credit. • Age at retirement. If you retire early, the amount of your monthly pension benefit will be less. • Retirement option. You will have several options when you retire. The amount of your monthly pension benefit will change for each option. You can calculate a pension benefit estimate using the following: • Manually calculate an estimate using the formula shown in Table worksheet below. • The PERF Retirement Benefit Estimate Calculator available on the INPRS website. • The calculator available by logging into your account online. See Option 1 for instructions to locate this calculator. Table 1: Pension Benefits Calculation Worksheet Example Example You Final average salary $50,000.00 $ Benefit multiplier X 0.011 X 0.011 Retirement benefit base amount $550.00 $ Years of service X 30 X Annual pension benefit $16,500.00 $ Monthly benefit ÷ 12 ÷ 12 Calculated as an A-1 option (Five Year Certain and Life) $1,375.00 $ Option 1 To use the online calculator, login to your online account at myINPRSretirement.org. 1. Go to the Application and Calculators 2. Select the Calculator Estimate Retirement Benefit. 3. Click on PERF Benefit Estimate Calculator. 4. Fill in Projected Retirement Values. 5. Click Calculate. The results will be an estimate of your monthly pension benefit broken down by the selected options. Option 2 (Social Security Integration) Using one of the available calculator features or the worksheet above, calculate an estimate with the information from your latest Social Security statement. To qualify for this Social Security Integration (SSI) payment option, you must be less than age 62 at retirement and you must enter your estimated Social Security monthly payment amount that Social Security shows for you at age 62. Depending upon your estimated Social Security payment, pension benefit payments will be greatly reduced or terminated at age 62. Public Employees’ Retirement Fund Hybrid Plan Page 30 of 48 Member Handbook Effective: 07/01/2024