Service credit × Multiplier × Final average salary = Annual benefit
TRS 1-3 Service Retirement bulletin p. 1, How to Calculate Retirement; TRS 4 SPD p. 7, Calculating foundational benefit annuity; TRS 1-3 SPD (2011) pp. 38-39, Annuity EstimateService credit
Total years in TRS of Kentucky, including part-time service after July 1, 2002, and purchased service. Service credit for unused sick leave counts in the total years but cannot be used for retirement eligibility. Maximum one year of credit per fiscal year (July 1-June 30). TRS 1-3 Service Retirement bulletin p. 1, Formula Definitions; TRS 4 SPD p. 7; KRS 161.623(2)
Unused sick leave days are divided by 185 to give service credit for the formula (not eligibility) where the employer provides it; for members who joined on or after July 1, 2008, at most 300 days count. Lump-sum sick-leave payouts at retirement (and annual-leave payouts for members who joined before July 2008) count in the final year's salary. TRS 4: a district lump-sum sick-leave payout may instead be deposited to the supplemental benefit. KRS 161.623(2), (8); TRS 1-3 Service Retirement bulletin p. 1; TRS 4 SPD p. 17, Sick leave
Sick-leave service credit counts in the formula but not toward eligibility. The sources don't say whether it can move you into a higher multiplier step (for example past 26 or 30 years).
We use the formula service you enter (including sick leave) to pick the multiplier step.
TRS 1-3 Service Retirement bulletin p. 1; KRS 161.623(2)TRS 1: 2.5% a year
2.5% for each year of service, except service before July 1, 1983 at 2%. Years over 30 (and only those years) at 3%. University members: 2% for each year of service. KRS 161.620(1)(a); TRS 1-3 Service Retirement bulletin p. 2, Multipliers; KRS 161.620(1)(c) (board-approved, retirements on or after July 1, 2004); TRS 1-3 Service Retirement bulletin p. 2 ('Any years above 30 (and only those years) use the 3% multiplier')
Example from the bulletin's rule (our engine): 10 of 30 years before July 1983 on a $100,000 average: 10 × 2% + 20 × 2.5% = 69.999% of salary, $70,000 a year. TRS 1-3 Service Retirement bulletin p. 2, Multipliers
TRS 1 service before July 1, 1983 is valued at 2%, and years over 30 at 3%. No example shows both together.
We count pre-1983 years at 2%, the years over 30 at 3%, and the rest at 2.5%.
TRS 1-3 Service Retirement bulletin p. 2; KRS 161.620(1)(a), (c)TRS 2: 2% under 10 years, then 2.5%
Less than 10 full years: 2% for each year. At least 10 full years: 2.5% for each year. Years over 30 (and only those years) at 3%. KRS 161.620(1)(b); TRS 1-3 Service Retirement bulletin p. 2 ('For TRS 2, the 2.5% begins at 10.0 years'); TRS 1-3 SPD (2011) p. 39, Step 2 note On a $60,000 average, 9.5 years pays $11,400 a year; 10 years pays $15,000, because all 10 years move to 2.5%.
TRS 3: four steps that apply to all your years
| School district or agency (non-university) | Multiplier | University or community college | Multiplier |
|---|---|---|---|
| 10 years or less (applies to all your years) | 1.7% | 10 years or less | 1.5% |
| over 10 through 20 years (applies to all your years) | 2% | over 10 through 20 years | 1.7% |
| over 20 through 26 years (applies to all your years) | 2.3% | over 20 but under 27 years | 1.85% |
| over 26 through 30 years (applies to all your years) | 2.5% | 27 years or more | 2% |
| each year over 30 (only those years) | 3% |
Reaching the next step lifts every year, not just the new ones. On a $60,000 average, 26 years at 2.3% pays $35,880 a year; 27 years at 2.5% pays $40,500, $4,620 more for one year. For a university member the same move (to 2% at 27 years) goes from $28,860 to $32,400. TRS 1-3 Service Retirement bulletin p. 2; TRS 4 Service Retirement bulletin p. 1 ('When a higher multiplier is attained, it applies to all years')
Years over 30, and only those years, earn 3% (school districts and agencies). With 32 years on a $60,000 average: 30 × 2.5% + 2 × 3% = $48,600 a year. KRS 161.620(1)(d)2. (same terms and conditions as (1)(c)); TRS 1-3 Service Retirement bulletin p. 2
The 3% rate for years over 30 (TRS 1, 2 and 3, school districts and agencies) is approved by the TRS of Kentucky board, which can limit what kinds of service qualify. Those limits aren't in the sources.
We apply 3% to every year over 30.
KRS 161.620(1)(c), (d)2.; TRS 1-3 SPD (2011) p. 39TRS 4: age factor + career factor
Age factor 1.7% from age 57 to 60, rising monthly (0.04% per year of age over 60) to 1.9% at 65; plus career factor 0.25% at 20-29.99 years or 0.5% at 30+ years. Applied to all years. Maximum 2.4%. KRS 161.620(1)(f); TRS 4 SPD p. 8, Multiplier; TRS 4 Service Retirement bulletin p. 1, Multipliers
University: Age factor 0.7% from age 57 to 60, rising monthly to 0.9% at 65; plus the same career factor. Maximum 1.4%. KRS 161.620(1)(g); TRS 4 SPD p. 8, Multiplier; TRS 4 Service Retirement bulletin p. 1, Multipliers
| Age at retirement | 10–19.99 yrs | 20–29.99 yrs | 30+ yrs | University 10–19.99 | 20–29.99 | 30+ |
|---|---|---|---|---|---|---|
| 57 to 60 | 1.7% | 1.95% | 2.2% | 0.7% | 0.95% | 1.2% |
| 61 | 1.74% | 1.99% | 2.24% | 0.74% | 0.99% | 1.24% |
| 62 | 1.78% | 2.03% | 2.28% | 0.78% | 1.03% | 1.28% |
| 63 | 1.82% | 2.07% | 2.32% | 0.82% | 1.07% | 1.32% |
| 64 | 1.86% | 2.11% | 2.36% | 0.86% | 1.11% | 1.36% |
| 65 or older | 1.9% | 2.15% | 2.4% | 0.9% | 1.15% | 1.4% |
Computed by our engine from the age and career factors; the TRS 4 Service Retirement bulletin prints the same chart. KRS 161.620(1)(f); TRS 4 SPD p. 8, Multiplier; TRS 4 Service Retirement bulletin p. 1, Multipliers
The law says the TRS 4 age factor rises "incrementally each month" after 60, but TRS of Kentucky's chart only shows whole ages (1.74% at 61).
We add 0.04% / 12 for each full month past 60, so 61 and 6 months = 1.76%.
KRS 161.620(1)(f)1.; TRS 4 Service Retirement bulletin p. 1The TRS 4 plan description's examples
- Age 65, 5 years, $40,000: 5 × 1.9% × $40,000 = $3,800 a year, $316.67 a month.
- Age 57, 30 years, $60,000: 30 × 2.2% × $60,000 = $39,600 a year, $3,300.00 a month.
Final average salary
- Final average salary is the average of your five highest annual salaries. TRS 1-3 members who are at least 55 with 27 or more years use the three highest.KRS 161.220(9); TRS 1-3 Service Retirement bulletin p. 1
- Raises in your last three years (last five for TRS 4) count only up to the percentage increase generally given to other TRS-covered employees of your employer.KRS 161.220(9); TRS 1-3 Service Retirement bulletin p. 1; TRS 4 SPD p. 8
- TRS 1-3: a lump-sum payout of unused sick leave at retirement (and unused annual leave for members who joined before July 2008) counts in your final year's salary.TRS 1-3 Service Retirement bulletin p. 1; KRS 161.220(9)
Floor and ceiling
Minimum: TRS 1 and TRS 2 members get at least $440 a year for each year of service. With 10 years on a $10,000 average, the formula gives less, so the minimum of $4,400 applies. KRS 161.620(3); TRS 1-3 SPD (2011) p. 41, Minimum Value of a Year of Service
Maximum: The retirement allowance, measured on a life annuity, may not exceed the greater of the member's last yearly salary or final average salary. Does not apply to the TRS 4 supplemental benefit. KRS 161.620(1)(h); TRS 4 SPD p. 18, Benefit limit; TRS 1-3 SPD (2011) p. 39, Step 2 note
Try your own numbers in the calculator, or see what one more year adds.
Questions
What is the TRS of Kentucky formula?
Years of service × multiplier × final average salary = your yearly Option I benefit. Divide by 12 for the monthly amount.
Does the higher multiplier apply to all my years?
Yes, in TRS 2 and TRS 3. When you reach a higher step, all your years (up to 30) use it. Years over 30 (school districts) use 3%, and only those years.
What is the TRS 4 multiplier?
An age factor (1.7% up to 60, rising to 1.9% at 65 for school districts) plus a career factor (0.25% at 20 years, 0.5% at 30 years).
Source: TRS Summary Plan Descriptions and Service Retirement bulletins, TRS 4 SPD January 2022; TRS 1-3 SPD 2011; Service Retirement bulletins March 2023, TRS 1-3 Service Retirement bulletin pp. 1, 2; TRS 4 SPD pp. 7, 8, 17, 18; TRS 1-3 SPD (2011) pp. 38-39, 38, 39, 41, 55; TRS 4 Service Retirement bulletin p. 1. Also: KRS 161.220, 161.620, 161.623. Last reviewed .