Benefit Calculation Examples

Tier 1 or 3 Enhanced: 2% at 55 (Section 31676.11 of the '37 Act)
Don Trump is planning to retire in two years. He started working when he was 25 years old. He remained in the Tier 1 benefit structure his entire career. He is now 53 years of age, with 28 years of verified retirement service credit. He is going to take advantage of the enhanced benefit formula, 2% at 55. In two years, he'll have 30 years of retirement service credit. He estimates his final average salary will be $6,000 monthly when he retires. He is planning on "saving" his final year of vacation days (accruals) to add to his retirement benefit. Here's his calculation:
$6,000 x 12 months = Annual Final Average Salary (FAS): $72,000
12 accrued vacation days x 10 hours = 120 hours of vacation
120 vacation hours x hourly salary ($37.50 hourly) = $4,500
$72,000 + $4,500 = $76,500 Annual Final Average Salary
$76,500 ÷ 12 = $6,375 Average Monthly Salary
$6,375 x 30 years of service x 0.020000 (retirement age factor from table) = $3,825 monthly pension benefit
  Don also paid into Social Security, so he must take a small reduction in benefit due to receiving a pension from both his employer and the SSA. The estimate brochure tables include the Social Security Offset factor. Don finds the factor for his age at retirement (55). He multiplies .023332 x 30 (his years of service) = $69.99. His final estimated monthly pension is: $3,825 - $69.99 = $3755.01