Under 20 years
+$1,700 a year
2% of a $85,000 ABS.
Handbook (2011), p. 17, Pension Benefit Calculation; Retirement booklet (June 2023), p. 6, Benefit Formula; Seminar handout (Jan. 6, 2025), slide 9Over 20 years
+$2,125 a year
2.5% of the same ABS.
Handbook (2011), p. 17, Pension Benefit Calculation; Retirement booklet (June 2023), p. 6, Benefit Formula; Seminar handout (Jan. 6, 2025), slide 9Early cut
Shrinks each month
Tier II factors rise with every month of age.
Seminar handout (Jan. 6, 2025), slide 10DRB's early retiree, working longer
Start from DRB's example: Tier II, 55 years 5 months, 19 years of service, ABS $85,000. Each row adds a year of age and of service. ABS kept the same. Try it in the calculator
The first row is DRB's figure; the later rows are our engine on DRB's rules.
| Retire on | Service | Cut | A month |
|---|---|---|---|
| Aug 1, 2026age 55 | 19 | 37.6% | $1,678.26 |
| Aug 1, 2027age 56 | 20 | none | $2,833.33+$1,155 |
| Aug 1, 2028age 57 | 21 | none | $3,010.42+$1,332 |
| Aug 1, 2029age 58 | 22 | none | $3,187.50+$1,509 |
| Aug 1, 2030age 59 | 23 | none | $3,364.58+$1,686 |
| Aug 1, 2031age 60 | 24 | none | $3,541.67+$1,863 |
The jump comes when the member reaches 20 years of membership service: the early cut disappears. After that, each year adds 2.5% of the ABS.
Tier II birthdays that change the math
- Age 60: normal retirement, so no early-retirement factor. Handbook (2011), p. 17, Minimum Requirements for Age-Based Retirement; Seminar handout (Jan. 6, 2025), slide 5
- Age 60, or 25 years of membership service: AlaskaCare retiree medical becomes system-paid instead of full premium. Handbook (2011), p. 23, Medical Coverage at Retirement; p. 24, Medicare; Retirement booklet (June 2023), p. 2, What Tier Am I?; Seminar handout (Jan. 6, 2025), slides 20, 22
- Age 65: the 10% Alaska COLA starts, if you live in Alaska. Handbook (2011), pp. 21-22, Cost-of-Living Allowance; Retirement booklet (June 2023), p. 2; p. 27, Alaska Cost-of-Living Allowance; Seminar handout (Jan. 6, 2025), slide 29
Tier I members reach normal retirement at 55 and get the Alaska COLA from retirement. Once you've stopped working and reached normal age, waiting longer doesn't raise the pension. Handbook (2011), p. 17; Seminar handout (Jan. 6, 2025), slide 8
The facts
- Check with Alaska TRSPast 20 years, each extra year earned after June 30, 1990 adds 2.5% of your average base salary instead of 2%. With an $85,000 ABS that is $2,125 a year (about $177 a month) more for each year after 20, before any raise to your ABS. This is worked from the formula, not a DRB example.Illustration computed from the published formula, not printed by DRB.Seminar handout (Jan. 6, 2025), slide 9
- Working longer can also move you from early to normal retirement (no factor) or reach 20 years of membership service, which allows unreduced retirement at any age.Handbook (2011), p. 17
Facts labeled "Check with Alaska TRS" are worked from DRB's formula, not printed by DRB.
See your own numbers in the calculator's work-longer comparison, or read about early retirement.
Questions
What does one more year add to an Alaska TRS pension?
2% of your average base salary a year while you're under 20 years, and 2.5% for each year after that. On a $85,000 ABS that's $1,700 or $2,125 a year.
Can one more year remove the early cut?
Yes. Reaching your tier's normal age, or 20 years of membership service, means no early-retirement factor.
Does waiting help after I've left my job?
Not by itself. A vested member who has left and reached normal retirement age doesn't get a bigger benefit by waiting.
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. 17, 21-22, 23, 24. Also: Retirement booklet (June 2023), pp. 2, 4, 6, 27; Seminar handout (Jan. 6, 2025), slides 5, 6, 8, 9, 10, 20, 22, 29. Last reviewed .