Calculating Your Retirement Benefit
KPERS retirement benefits are calculated using the following formula:
Final average salary x statutory multiplier x years of service = annual benefit at normal retirement age
Example: $30,000 x 1.75% x 30 = $15, 750 annual benefit
Final Average Salary
If your membership date is on or after July 1, 1993, your final average salary is:
- A three-year salary average excluding additional compensation*. This three-year average is based on the highest 12 annualized quarters of compensation during your career. They do not have to be continuous quarters.
If your membership date is before July 1, 1993, or you were in your "year of service" waiting for membership
on July 1, 1993, your final average salary is the
higher of:
-
A four-year salary average including additional compensation*. This four-year average is based on the
highest 16 annualized quarters of compensation during your career. They do not have to be continuous quarters. - A three-year salary average excluding additional compensation*. This three-year average is based on the highest 12 annualized quarters of compensation during your career. They do not have to be continuous quarters.
KPERS will calculate both options and use whichever is higher to calculate your retirement benefit. If add-on pay is included in your final average salary, it is spread over all the days that you worked in the calendar year you retired. It is not credited only to the quarter in which you were paid for it.
*Additional Compensation or "add-on pay" is compensation from your employer for unused sick leave, annual leave, etc. KPERS cannot use an early retirement incentive or severance pay as part of add-on pay when calculating your final average salary. School employees have special guidelines. Please contact the Retirement System.
Statutory Multiplier
1.75 percent for participating service
1 percent or 0.75 percent
for prior years of service (time worked for an employer before affiliation with KPERS)
Estimate Your Benefit
You can calculate your own estimate with KPERS' benefit calculator. Simply enter your own information from your KPERS annual statement.