Service Credit Factor = 2% x creditable service years up to 25 (Tiers 1-3) or 30 (Tier 4), plus 2.5% x each additional year. Maximum Retirement Allowance (annual) = average compensation x Service Credit Factor; monthly = annual / 12. Tier 5: 1% x every year of service. Member Handbook (2024), pp. 24, 27, 62, Service Retirement Formula; Base Benefit Estimate Calculator; Appendix F; Hybrid Plan Handbook (2026), p. 17
The Service Credit Factor by years of service
| Years | Tiers 1-3 | Tier 4 | Tier 5 |
|---|---|---|---|
| 20 | 40% | 40% | 20% |
| 25 | 50% | 50% | 25% |
| 26 | 52.5% | 52% | 26% |
| 28 | 57.5% | 56% | 28% |
| 30 | 62.5% | 60% | 30% |
| 31 | 65% | 62.5% | 31% |
| 33 | 70% | 67.5% | 33% |
| 35 | 75% | 72.5% | 35% |
Our engine on the rules above, the same as the handbook's Appendix F. Shaded rows are the breakpoints: 25 years for Tiers 1-3, 30 for Tier 4.
The handbook's example
Four highest years of $30,000, $31,000, $32,000, $33,000: total $126,000, ÷ 4 = $31,500 average compensation. Age 60, 30 years. Member Handbook (2024), p. 27, Example Figures (Tiers 1-3)
| Factor | A year | A month | |
|---|---|---|---|
| Tiers 1-3Handbook shows $1,640.63 | 62.5% | $19,687.50 | $1,640.63 |
| Tier 4Handbook shows $1,575.00 | 60% | $18,900.00 | $1,575.00 |
Average compensation
Average of the four highest years of earned compensation: the four highest fiscal years, the four highest calendar years, a non-overlapping combination of fiscal and calendar years, or the final 48 months before termination. The years need not be consecutive but may total no more than 48 months. A lump-sum payment of up to 240 hours (30 days) of leave counts. Raises over 8% a year in the final 24 months are excluded unless authorized by the Legislature or State Personnel Board or due to a change of position, and may not be based on a promise to retire. Member Handbook (2024), p. 24, Average Compensation; Summary of Major Plan Provisions (2024), p. 2; Miss. Code Ann. § 25-11-103(f) (H.B. 4073 (2026), § 17, pp. 51-52)
The most pay that counts in a year was $345,000 from July 1, 2024. Summary of Major Plan Provisions (2024), p. 1 ($345,000 per fiscal year, effective July 1, 2024; later years not in our sources)
The only figure we have is $345,000 for FY 2025 (Summary of Major Plan Provisions as of July 1, 2024).
Not applied in the calculator.
What would settle it: A current Summary of Major Plan Provisions.
- Yearly benefit = average compensation x Service Credit Factor. Tiers 1-3: 2% for each of the first 25 years plus 2.5% for each year after that. Tier 4: 2% for each of the first 30 years plus 2.5% for each year after. Tier 5: 1% for every year.Member Handbook (2024), pp. 24, 62; Hybrid Plan Handbook (2026), p. 17
- Example: average compensation of $31,500 and 30 years at age 60 gives $19,687.50 a year ($1,640.63 a month) in Tiers 1-3, or $18,900 a year ($1,575 a month) in Tier 4.Member Handbook (2024), p. 27
- Tier 5 example: 1% x 30 years x $65,000 = $19,500 a year, or $1,625 a month, plus whatever is in the member's defined contribution account.Hybrid Plan Fact Sheet (2026), p. 1
- Members who joined before July 1, 2011 get at least $10 a month for each year of service. Later members have no minimum.Member Handbook (2024), p. 25; Mississippi PERS Board Regulation 30
- Mississippi PERS calls it 'average compensation': your four highest years of earnings. These can be fiscal years, calendar years, a mix of the two that doesn't overlap, or your last 48 months. The years don't have to be in a row.Member Handbook (2024), p. 24
- A lump-sum payout of up to 240 hours (30 days) of leave counts. Raises over 8% a year in your last 24 months don't count unless the Legislature or State Personnel Board authorized them or you changed positions.Member Handbook (2024), p. 24; Summary of Major Plan Provisions (2024), p. 2
Minimum benefit
Members who joined before July 1, 2011: at least $10 a month for each year of service (and proportionately for each quarter year) under the Maximum option, reduced for the option selected. None for members who joined on or after July 1, 2011. Member Handbook (2024), p. 25; Mississippi PERS Board Regulation 30, §§ 101(6), 102; Miss. Code Ann. § 25-11-111(d)(3) (H.B. 4073 (2026), § 18, p. 68)
The $10-a-month minimum (Tiers 1-3) applies 'proportionately for each quarter year' of service; sources don't say how partial quarters are rounded.
Whole quarter-years of service, rounded down.
What would settle it: Mississippi PERS Regulation 30 worked example or a Mississippi PERS estimate.
Service credit
Before July 1, 2017: credit in quarter-years (0.25 in July, October, January and April). From July 1, 2017: 0.0833 (1/12) per month. School employees under contract must substantially complete the school term to get a full year. Member Handbook (2024), p. 58, Appendix A; Pre-Retirement Guide (2024), p. 2
Disability example
The handbook's Age-Limited disability example adds service to age 60: 27 years gives a factor of 55% × $31,500 = $17,325 a year, matching our engine. Member Handbook (2024), p. 42, Age-Limited Disability Plan example (24 years + 3 years to age 60)
A benefit is reduced to the IRC § 415(b) limit if it exceeds it; the excess is paid through an excess benefit arrangement. Member Handbook (2024), p. 24, Excess Benefit Arrangement
Try your own numbers in the calculator, or see what one more year adds.
Questions
What is the Mississippi PERS Service Credit Factor?
The percentage of your average compensation you get each year. Tiers 1-3: 2% a year for the first 25 years, then 2.5% for each year after. Tier 4: 2% a year for the first 30 years, then 2.5% for each year after. Tier 5: 1% a year for every year.
What is average compensation?
The average of your 4 highest years of earned compensation: fiscal years, calendar years, a non-overlapping mix, or your last 48 months.
Source: Mississippi PERS Member Handbook, Revised November 8, 2024, pp. 24, 25, 27, 42, 58, 62. Also: Hybrid Plan Handbook (2026); Summary of Major Plan Provisions (2024); Pre-Retirement Guide (2024); Hybrid Plan Fact Sheet (2026); Mississippi PERS Board Regulation 30; Miss. Code Ann. §§ 25-11-103, 25-11-111. Last reviewed .