Each year beyond 25 (Tiers 1-3) or 30 (Tier 4) adds 2.5% of average compensation to your yearly benefit, instead of 2%. On $50,000 that's $1,250 more a year. Member Handbook (2024), pp. 24, 27, 62, Service Retirement Formula; Base Benefit Estimate Calculator; Appendix F; Hybrid Plan Handbook (2026), p. 17
Mississippi PERS's five-year example
Annual Maximum benefit including the COLA, retiring at 60 (25 years, $20,000) vs at 65 (30 years, $26,250), after 5, 10, 15 and 20 years in retirement. Pre-Retirement Guide (2024), p. 4, The Five-Year Difference
| Years retired | Retire at 6025 yrs, $40,000 | Retire at 6530 yrs, $42,000 |
|---|---|---|
| Start | $20,000 | $26,250 |
| After 5 | $22,510ours $22,510 | $29,544ours $29,544 |
| After 10 | $26,096ours $26,096 | $34,251ours $34,251 |
| After 15 | $30,252ours $30,252 | $39,706ours $39,706 |
| After 20 | $35,070ours $35,070 | $46,030ours $46,029 |
Yearly amounts with the COLA, from the guide; "ours" is our engine using the handbook's COLA table.
Pre-Retirement Guide p. 4 shows $46,030 for $26,250 after 20 years in retirement. Using the Appendix G compounded rate for 19 COLAs (0.7535) gives $46,029.38; exact 3% compounding gives $46,030.09. The other seven figures match the Appendix G rates. Tests allow $1.
Pre-Retirement Guide (2024), p. 4; Member Handbook (2024), p. 63
Two members, one to three more years
Tier 2: age 55 with 25 years on $55,000
| Retire | Service | A month |
|---|---|---|
| NowJuly 1, 2026, age 55 | 25 | $2,292 |
| +1 yearJuly 1, 2027, age 56 | 26 | $2,406 |
| +2 yearsJuly 1, 2028, age 57 | 27 | $2,521 |
| +3 yearsJuly 1, 2029, age 58 | 28 | $2,635 |
Tier 4: age 58 with 28 years on $55,000
| Retire | Service | A month |
|---|---|---|
| NowJuly 1, 2040, age 58 | 28 | not eligible |
| +1 yearJuly 1, 2041, age 59 | 29 | not eligible |
| +2 yearsJuly 1, 2042, age 60 | 30 | $2,750 |
| +3 yearsJuly 1, 2043, age 61 | 31 | $2,865 |
Our engine, same average compensation each year. The Tier 4 member can't retire at 58 or 59 (early retirement starts at 60); at 60 they have 30 years and a full benefit.
- Each year you work past 25 (Tiers 1-3) or 30 (Tier 4) adds 2.5% of average compensation to your yearly benefit. Mississippi PERS's example: 25 years on $40,000 retiring at 60 pays $20,000 a year; working to 65 with 30 years on $42,000 pays $26,250. With the COLA, after 20 years in retirement that is $35,070 vs $46,030.Pre-Retirement Guide (2024), p. 4
Compare your own years in the calculator.
Questions
What does one more year add to a Mississippi PERS pension?
Up to 25 years in Tiers 1-3 (30 in Tier 4), 2% of average compensation a year. Each year after that adds 2.5%. In Tier 4, working to 30 years or age 65 also removes the early-retirement reduction.
Source: Mississippi PERS Member Handbook, Revised November 8, 2024, pp. 15, 24, 25, 27, 62. Also: Hybrid Plan Handbook (2026); Pre-Retirement Guide (2024); Mississippi PERS 2024 annual report; Mississippi PERS Board Regulation 30; Miss. Code Ann. § 25-11-111. Last reviewed .