Tier 1 Noncontributory
2% a year
Monthly Option One benefit = 2% x years of service x final average monthly salary, less any early retirement reduction.
Total your three highest years of salary and divide by 36 to get your final average monthly salary. If any year used exceeds the previous year's salary by more than 10% plus a cost-of-living adjustment set by the CPI, that year is limited.
Tier 1 Highlights (2026-27), p. 15; Utah Code 49-13-402(2); Tier 1 Highlights (2026-27), p. 15; Utah Code 49-13-102(3)Tier 2 Hybrid
1.5% a year
Monthly Option One benefit = 1.5% x years of service x final average monthly salary (highest five years), less any early retirement reduction.
Total your five highest years of salary and divide by 60 to get your final average monthly salary. Yearly increases are limited to 10% plus a COLA set by the CPI. With fewer than five years of service, the average covers your full period of service.
Tier 2 Highlights (2026-27), p. 15; Comparing Tier 2 Plans (2026-27), pp. 5, 11; Utah Code 49-22-305(2); Tier 2 Highlights (2026-27), pp. 15-16; Utah Code 49-22-102(4)Short answer: your monthly URS benefit is 2% × years of service × your highest-3-year average monthly salary in Tier 1, or 1.5% × years × your highest-5-year average in the Tier 2 Hybrid. URS's own example: 35 years × 1.5% × $40,000 = $1,750 a month. Which tier am I? Retiring before full age? See early retirement and one more year. Load URS's example in the calculator.
URS's example
URS's example: 35 years of service x 1.5% = 52.5% of a $40,000 average salary = $21,000 a year, or $1,750 a month. Comparing Tier 2 Plans (2026-27), p. 5 Our calculator gives the same: $1,750.00 a month.
What each year is worth
Our engine on URS's formulas, not a URS example: a $60,000 final average salary, before any early-retirement reduction. Each year adds $100.00 a month in Tier 1 and $75.00 in the Tier 2 Hybrid.
| Years | Tier 1 | Tier 2 Hybrid |
|---|---|---|
| 10 | $1,00020% of salary | $75015% of salary |
| 20 | $2,00040% of salary | $1,50030% of salary |
| 25 | $2,50050% of salary | $1,87537.5% of salary |
| 30 | $3,00060% of salary | $2,25045% of salary |
| 35 | $3,50070% of salary | $2,62552.5% of salary |
Your final average salary
- Tier 1 uses your highest three years of salary (total divided by 36 for a monthly figure); Tier 2 uses your highest five (divided by 60). With fewer than five years in Tier 2, the average covers your whole period of service.Tier 1 Highlights (2026-27), p. 15; Tier 2 Highlights (2026-27), p. 15; Utah Code 49-22-102(4)(e)
- A year that's more than 10% plus a CPI cost-of-living adjustment above the previous year's salary is limited, unless your employer documents a transfer or promotion.Tier 1 Highlights (2026-27), p. 15; Utah Code 49-13-102(3)(b)-(c), 49-22-102(4)(b)-(c)
A year's salary is limited if it exceeds the previous year's by more than 10% plus a CPI cost-of-living adjustment (exceptions for transfers and promotions). Our calculator's optional cap treats it as previous x (1 + 10% + CPI%).
Previous year's salary x (1.10 + CPI) when you give a CPI; otherwise no cap.
What would settle it: URS's salary-cap rule or a worked example.
Tier 2's statute averages the full period when you have under five years. Tier 1's statute is silent for under three years; our calculator averages whatever years are given.
The average of the years you enter.
What would settle it: A URS rule for Tier 1 members with fewer than three years of salary.
Extra 3% for some Tier 1 members
An additional 3% may be added to your Tier 1 monthly benefit if you had retirement service in your account on Jan. 1, 1989 (it offsets state income tax on benefits). If you refund and later reinstate withdrawn contributions you forfeit the 3%. Tier 1 Highlights (2026-27), p. 21; Utah Code 49-11-701; URS Actuarial Valuation (Jan. 1, 2025), App. 2, p. 100, item 18
The Tier 1 booklet says an additional 3% 'may be added' with service on Jan. 1, 1989. Our calculator adds 3% to the reduced Option One amount when you say you qualify; the order of operations isn't published.
Option One after reduction x 1.03, only if you tick the box.
What would settle it: A URS estimate for a pre-1989 member.
Retiring before your full-benefit age cuts the formula amount: see early retirement. Try your own numbers in the calculator.
Questions
What is the URS Tier 1 formula?
2% × years of service × your final average monthly salary (your highest 3 years of salary divided by 36), less any early-retirement reduction.
What is the URS Tier 2 Hybrid formula?
1.5% × years of service × your final average monthly salary (your highest 5 years divided by 60), less any early-retirement reduction.
Is every salary year counted in full?
A year that rose more than 10% plus a CPI cost-of-living adjustment over the year before is limited, unless your employer documents a transfer or promotion.
Source: URS Tier 1 Noncontributory and Tier 2 Public Employees Retirement System Highlights, 2026-27, effective July 1, 2026, Tier 1 pp. 15, 21; Tier 2 pp. 2, 15-16. Also: Comparing Tier 2 Plans (2026-27); URS Actuarial Valuation (Jan. 1, 2025); Utah Code §§ 49-11-701, 49-13-102, 49-13-402, 49-22-102, 49-22-305. Last reviewed .