ACPS example
Age 58 with 26 years and a $72,000 average pay, all service after June 1998. Starting the pension on a birthday:
| Work | Age, service | Cut | Monthly | vs. now |
|---|---|---|---|---|
| Retire now | 58, 26 yrs | 24% | $2,134.08 | — |
| +1 year | 59, 27 yrs | 18% | $2,391.12 | +$257 |
| +2 years | 60, 28 yrs | 12% | $2,661.12 | +$527 |
| +3 years | 61, 29 yrs | 6% | $2,944.08 | +$810 |
| +4 years | 62, 30 yrs | none | $3,240 | +$1,106 |
At 62 with 30 years you qualify for a full ACPS pension, so the cut is gone. The check rises from $2,134.08 to $3,240 a month. ACPS Handbook p. 18, Service Retirement; ACPS Handbook p. 18, Early Service Retirement; p. 22, Early Service Retirement
RCPB example: the Rule of 90
Age 58 with 28 years and the same $72,000 average pay. Under 60, an RCPB member can't retire at all until age plus service reaches 90.
| Work | Age + service | Monthly |
|---|---|---|
| Retire now | 58 + 28 = 86 | not payable yet |
| +1 year | 59 + 29 = 88 | not payable yet |
| +2 years | 60 + 30 = 90 | $2,700 |
| +3 years | 61 + 31 = 92 | $2,790 |
At 60 with 30 years the total hits 90: a full pension of $2,700 a month. RCPB Handbook p. 18, Service Retirement
Both examples are ours, built with the rules above. They keep average pay the same; raises would add more.
What the handbooks say
- Each extra year adds 1.8% of AFC (ACPS) or 1.5% (RCPB) to your yearly benefit, and if you are retiring early it also removes 6 percentage points of reduction.ACPS Handbook pp. 18, 21; RCPB Handbook pp. 18, 21
- For RCPB members, each year of work moves you two points closer to the Rule of 90 (one year of age plus one year of service).RCPB Handbook p. 18
- A higher salary in your last years raises AFC only if those years are among your 3 (ACPS) or 5 (RCPB) highest consecutive years.ACPS Handbook p. 21; RCPB Handbook p. 21
Questions
What does one more year add?
A year of service: 1.8% of your average pay a year in the ACPS, 1.5% in the RCPB. If you'd retire early, it also takes 6% off your cut.
Does a raise in my last year help?
Only if that year becomes one of your highest 3 (ACPS) or 5 (RCPB) years in a row.
When does working longer stop paying off?
Each year still adds service. But once you qualify for a full pension, the cut is gone, so each later year adds less than the years that ended the cut.
Source: SRPS Benefits Handbooks: Teachers' Pension System (Alternate Contributory Pension Selection; Reformed Contributory Pension Benefit), Revised April 2021, ACPS Handbook pp. 18, 21, 22; RCPB Handbook pp. 18, 21. Last reviewed .