First 20 years
2% a year
of your average base salary (ABS).
Handbook (2011), p. 17, Pension Benefit Calculation; Retirement booklet (June 2023), p. 6, Benefit Formula; Seminar handout (Jan. 6, 2025), slide 9Years after 20
2.5% a year
for years earned after June 30, 1990.
AS 14.25.110(d)Tier I
Pre-1990 = 2%
Years earned before July 1, 1990 are always at 2%, even past 20.
AS 14.25.110(d)Short answer: monthly pension = ABS ÷ 12 × (2% × years up to 20 + 2.5% × later years earned after June 30, 1990). DRB's example: 22 years on a $85,000 ABS pays $3,187.50 a month. Open it in the calculator. Retiring before your tier's normal age adds a factor (early retirement), and claimed service adds years.
DRB's example
DRB's January 2025 seminar handout: 22 years of service and an ABS of $85,000.
Our engine gets the same: $3,187.50. DRB shows $3,187.50. Load it in the calculator
Seminar handout (Jan. 6, 2025), slide 10Tier I: years before July 1, 1990
Our example: a Tier I member with 30 years, 22 of them before July 1, 1990, and an ABS of $85,000. The 22 early years are all at 2%, so only 8 are at 2.5%: $4,533.33 a month.
AS 14.25.110(d)The statute says service "earned before June 30, 1990" is figured at 2%; DRB's handout says "prior to July 1, 1990". We use July 1, 1990 as the split, the start of the 1990-91 school year.
AS 14.25.110(d); Seminar handout (Jan. 6, 2025), slide 9
What $85,000 buys at each length of service
Our illustration with the formula, a full benefit, your life only.
| Years | A year | A month |
|---|---|---|
| 10 | $17,000 | $1,416.67 |
| 15 | $25,500 | $2,125.00 |
| 20 | $34,000 | $2,833.33 |
| 25 | $44,625 | $3,718.75 |
| 30 | $55,250 | $4,604.17 |
Average base salary
Add your 3 highest annual base contract salaries and divide by 3. DRB's example: $40,000, $45,000, $50,000 = $45,000.
Handbook (2011), p. 18, Pension Benefit Calculation; Retirement booklet (June 2023), p. 6, Average Base Salary; Handbook (2011), p. 18, EXAMPLEThe facts
- Your yearly pension is 2% of your average base salary for each of your first 20 years of service (and for every year earned before July 1, 1990), plus 2.5% for each year over 20 earned after June 30, 1990. Divide by 12 for the monthly amount.Handbook (2011), p. 17, Pension Benefit Calculation; Seminar handout (Jan. 6, 2025), slide 9; AS 14.25.110(d)
- DRB's example: 22 years with an $85,000 average base salary is 2% x $85,000 x 20 = $34,000 plus 2.5% x $85,000 x 2 = $4,250, for $38,250 a year or $3,187.50 a month.Seminar handout (Jan. 6, 2025), slide 10
- Your pension does not depend on how much you contributed. It comes from the formula using your average salary and years of service.Handbook (2011), p. 6, NOTE
- Alaska TRS uses your average base salary (ABS): your three highest annual base contract salaries, including addenda, added together and divided by three. Example: $40,000, $45,000 and $50,000 give an ABS of $45,000.Handbook (2011), p. 18, EXAMPLE
- A school year counts toward your ABS only if you worked and were paid for at least two-thirds of it (115 days). Part-time salaries are figured at the full-time rate, and termination-contingent bonuses in your last year are left out.Handbook (2011), p. 18; Retirement booklet (June 2023), p. 6, Average Base Salary
What you and your employer pay
Tier I and II members pay 8.65% of base salary, before tax. Employers pay 12.56%. On $85,000, that's $7,353 and $10,676 a year. Handbook (2011), p. 6, Contributions; Plan Comparison Chart (Rev. 1/20), p. 1; AS 14.25.050(a), 14.25.070(a)
AS 14.25.070(a) sets 12.56%, the 2020 chart says '12.56% Cost Share' and points to a rate page; the handbook says the rate may change each year.
We quote 12.56% from the statute and the 2020 chart. It doesn't change your benefit.
What would settle it: DRB employer contribution rates page for FY2026/FY2027.
Next: early retirement or one more year.
Questions
What is the Alaska TRS formula?
Average base salary × 2% for each of your first 20 years, plus 2.5% for each year after 20 earned after June 30, 1990. Divide by 12 for the monthly amount.
What is average base salary (ABS)?
Your 3 highest annual base contract salaries, including addenda, added together and divided by 3. A school year counts only if you worked at least 115 days.
Do my contributions set my pension?
No. Your pension comes from the formula, using your ABS and years of service, not from how much you paid in.
Source: Alaska Teachers' Retirement System Information Handbook (Tiers I and II), 2011 edition (current on drb.alaska.gov), checked against the TRS Retirement Application Instruction Booklet (June 2023), pp. 6, 17, 18. Also: Retirement booklet (June 2023), p. 6; Seminar handout (Jan. 6, 2025), slides 9, 10; Plan Comparison Chart (Rev. 1/20), p. 1; AS 14.25.050, 14.25.070, 14.25.110, 14.25.340, 14.25.350. Last reviewed .