Short answer: in Tier 1, each year past 15 adds 2.25% of your highest average salary (2% a year in Tier 2). It also takes 5 points off an early cut and adds 2 points toward the Rule of 85. See the formula, or load the example below in the calculator.
Each year you work adds service, may raise your highest average salary, takes 5 points off an early cut, and adds 2 points to your age plus service: 1 for the year of age, 1 for the year of service. Handbook p. 9, Estimating Your Benefit and Public Employee Pension Benefit Table; Handbook p. 11, Taking a Reduced Retirement Benefit; Handbook p. 11, Retirement Eligibility Ages and Understanding the 'Rule of 85'
Our example
A Tier 1 member, 56 with 24 years and a $60,000 highest average salary. Age plus service is 80 now.
| Retire at | Years | Age + service | Type | Monthly |
|---|---|---|---|---|
| 56 | 24 | 80 | Early −20% | $2,085 |
| 57 | 25 | 82 | Early −15% | $2,311 |
| 58 | 26 | 84 | Early −10% | $2,548 |
| 59 | 27 | 86 | Full | $2,944 |
| 60 | 28 | 88 | Full | $3,056 |
| 61 | 29 | 90 | Full | $3,169 |
Same average each year; raises would add more. Option 1 amounts. Handbook p. 9, Estimating Your Benefit and Public Employee Pension Benefit Table; Handbook p. 11, Taking a Reduced Retirement Benefit
Your average can rise too
Your pension uses your highest average salary, not your last salary. A raise in your final years only helps if it lifts your best 36 months (Tier 1) or 60 months (Tier 2). Tier 1: average of your highest 36 continuous months of acceptable salary. Tier 2: highest 60 continuous months. Missing months count as zero. Salaries from two or more contributing positions in the plan are combined. Excluded: unused leave payouts, housing and transportation allowances, early retirement incentives and severance, bonuses, insurance premiums/benefits, workers' compensation (except state agencies and UW) and salary spikes meant mainly to raise the pension. Handbook pp. 7-8, Highest Average Salary and What Counts as Acceptable Salary
Buying service instead of working
If another year isn't possible, a one-time purchase of up to 5 years adds service at once and can bring the Rule of 85 up to 2.5 years sooner. WRS quotes the price. Handbook p. 10, Increasing Your Pension Benefit via a Service Purchase See buying service credit.
From the sources
- Each extra year adds 2.25% of your highest average salary in Tier 1 (after 15 years) or 2% in Tier 2, and your average may rise too. If you are retiring early, each year closer to 60 or 65 also removes 5% of the reduction, and you might reach the Rule of 85.Handbook p. 9, Estimating Your Benefit; p. 11, Taking a Reduced Retirement Benefit; p. 16, Maximizing Your Benefit
- While you keep working, your age and your service both go up, so you gain two points a year toward the Rule of 85.Handbook p. 11, Understanding the 'Rule of 85'
Questions
What does one more year add?
More service (2.125% or 2.25% of your average a year in Tier 1, 2% in Tier 2), possibly a higher average, 5 points off an early cut, and 2 points toward the Rule of 85.
Does waiting help if I've already stopped working?
Waiting only shrinks the early cut. Your service and average stay the same, and the Rule of 85 moves 1 point a year instead of 2.
Source: WRS Public Employee Pension Plan Handbook, Updated August 2026, pp. 7-8, 9, 10, 11, 16. Last reviewed .