An example
Membership after July 1, 2011, age 58 with 24 years of service, $5,000 average monthly compensation. Pay stays the same.
| Retire at | Multiplier | Cut | Monthly | Gain |
|---|---|---|---|---|
| Age 58 24 yrs · Early | 2.15% | 16% | $2,167 | — |
| Age 59 25 yrs · Early | 2.20% | 11% | $2,448 | +$280 |
| Age 60 26 yrs · Normal, no cut | 2.20% | none | $2,860 | +$413 |
| Age 61 27 yrs · Normal, no cut | 2.20% | none | $2,970 | +$110 |
| Age 62 28 yrs · Normal, no cut | 2.20% | none | $3,080 | +$110 |
Figured with ASRS's formula. At these whole ages the early cuts are ASRS's published factors. ASRS Estimate Your Benefits page, Benefit Formula; ASRS Employer Basics 2025, p. 8; A.R.S. 38-757(B); ASRS Estimate Your Benefits page, early retirement factors in the page's estimator; A.R.S. 38-758(C); ASRS Retirement Eligibility page, table; ASRS Employer Basics 2025, p. 8; A.R.S. 38-711(27)(b)
From ASRS and the law
- Each extra year adds service, and crossing 20, 25 or 30 years raises the multiplier on every year. Example: 19 years x 2.10% x $5,000 = $1,995; 20 years x 2.15% x $5,000 = $2,150.A.R.S. 38-757(B)(1)
- If you are short of normal retirement, another year also shrinks the early reduction (5% or 3% per year).A.R.S. 38-758(B)-(C)
How ASRS counts the extra year
Each month in which a member contributes counts as one month of service credit (the smallest unit is one month); school employees earn a full year in 9 months; no more than 1.0 year in a fiscal year. Service is awarded in the month contributions are reported. ASRS Employer Basics 2025, p. 9; ASRS Estimate Your Benefits page, Years of Service; A.R.S. 38-739(A)-(C) So for a school employee, a year of extra work usually means a full extra year of service, and a few months of extra work can still add service in whole months. A refund ends that service entirely, so working a year more only helps if you keep your account (see refund or keep your account).
The multiplier bands are on the formula page, the full cut by age is in the early-retirement factor table, and buying service credit is another way to add years.
Questions
What does one more year add to my ASRS pension?
A year of service, and possibly a higher multiplier on all your years when you cross 20, 25 or 30 years (ASRS Estimate Your Benefits page, Benefit Formula; ASRS Employer Basics 2025, p. 8; A.R.S. 38-757(B)(1)). If you are short of normal retirement, it also shrinks the early cut.
Does a raise help?
Yes. Your average monthly compensation is your highest stretch of pay in a row within your last 120 months, so a raise near the end can lift it (ASRS Retirement Eligibility page, Average Monthly Compensation; ASRS Employer Basics 2025, p. 9; A.R.S. 38-711(5)(c)). The examples here keep pay the same.
Source: ASRS Employer Basics 2025 handbook, March 2025 edition, saved Nov. 12, 2026; with other ASRS publications and the Arizona Revised Statutes, pp. 8, 9. Also ASRS web page: Retirement Eligibility. Also ASRS web page: Estimate Your Benefits. Also A.R.S. 38-711, 38-739, 38-757, 38-758 (Arizona Revised Statutes, Title 38, Ch. 5, Art. 2). Last reviewed .