Getting past the early cut
Our example: age 54 with 25 years and a $55,000 final average salary, retiring July 1, 2026 or later. Each year adds service and shrinks the cut until it's gone at 28 years.
| Retire | Service | Cut | Monthly |
|---|---|---|---|
| As planned age 54 | 25 | −30% | $1,774.48 |
| 1 more year age 55 | 26 | −20% | $2,099.67 |
| 2 more years age 56 | 27 | −10% | $2,444.56 |
| 3 more years age 57 | 28 | none | $2,809.17 |
| 4 more years age 58 | 29 | none | $2,907.71 |
Our engine, ATRS's rules: straight life annuity plus the $50 stipend, FAS held flat. Member Handbook p. 6, Retirement Benefit Calculation; p. 26, Benefit Amount; 24 CAR § 10-610(b); Member Handbook p. 21, Do I have a reduction on my retirement benefit if I retire early?; General Info pamphlet p. 2, Retirement Requirements
The 10-year jump
One more quarter of a year adds $234.89 a month here.
Every other year
Past those lines, a year of contributory service adds 2.15% of your FAS. A raise adds more, because your FAS is your 5 highest years.
Working longer without more service: T-DROP
Once you have 28 years, there's another way to keep working. In T-DROP, monthly deposits build in an account for up to 10 years instead of your service growing. No service credit is earned and no member contributions are paid while in T-DROP; the FAS is frozen. Member Handbook p. 17 So a year in T-DROP doesn't add 2.15% to your monthly benefit the way a regular year does; it adds to the account instead.
After you retire, the 3% COLA starts once you've been retired a full fiscal year (see COLA). Member Handbook p. 26, Will my monthly retirement benefit remain the same for the rest of my life?; p. 5; p. 52, Glossary, Cost of Living Adjustment; General Info pamphlet p. 2; 2026 Retirement Planner p. 3
From the sources
- Each extra year of contributory service adds 2.15% of your final average salary to the yearly benefit. Reaching 28 years also removes any early reduction.artrs.gov/multiplier; Member Handbook p. 21
- Going from 9.75 to 10 years of actual service raises all post-July 2018 service from 1.75% to 2.15% and adds the $50 monthly stipend.artrs.gov/multiplier; Member Handbook p. 26
Questions
How much does one more year add to an ATRS pension?
2.15% of your final average salary a year for contributory service. On a $55,000 FAS that's $1,183 a year, about $99 a month, before any raise.
When is one more year worth the most?
When it gets you to 28 years or age 60 and ends an early cut, or when it takes you from under 10 years to 10, which moves all your service to the higher multiplier and adds the $50 stipend.
Source: ATRS Member Handbook, 2026-2027 school year (current as of July 2026), pp. 5, 6, 12, 17, 21, 26, 52. Also: General Info pamphlet p. 2; 2026 Retirement Planner pp. 3, 10; artrs.gov/multiplier; Actuarial valuation 2025 p. C-3; ATRS rules, 24 CAR §§ 10-605, 10-610. Last reviewed .