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PERSI Retirement Formula:
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The PERSI (Public Employee Retirement System of Idaho) retirement calculation determines the monthly annuity benefit for public employees based on their average monthly salary and years of service. This formula provides a predictable retirement income for eligible public servants.
The calculator uses the PERSI formula:
Where:
Explanation: The formula calculates 2% of your average monthly salary for each year of service, providing your estimated monthly retirement benefit.
Details: Understanding your potential retirement benefits is crucial for financial planning, helping you make informed decisions about savings, investments, and retirement timing.
Tips: Enter your average monthly salary in dollars and your total years of service. Use decimal values for partial years (e.g., 25.5 years).
Q1: What is included in Average Monthly Salary?
A: AMS typically includes your base salary plus any applicable bonuses or overtime, calculated as an average of your highest consecutive months (usually 36-60 months).
Q2: Are there maximum benefit limits?
A: Yes, PERSI typically has maximum benefit limits, often around 60-80% of your final average salary, depending on your specific retirement plan.
Q3: How does early retirement affect benefits?
A: Early retirement usually results in reduced benefits. Reduction factors vary based on how many years before normal retirement age you choose to retire.
Q4: Can I purchase additional service credit?
A: In many cases, yes. You may be able to purchase additional service credit for previous employment, military service, or unpaid leave, which can increase your retirement benefit.
Q5: How often are benefits adjusted for inflation?
A: PERSI typically provides cost-of-living adjustments (COLAs) to help benefits keep pace with inflation, though the specific adjustment formula varies.