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Calculating Your Pension
Your first step in estimating your pension will always be to figure your Final Average Compensation (FAC). Then you use the pension formula to figure your calculation.
The Pension Formula
Your annual pension is based on a formula that multiplies your final average compensation by a pension factor times your years of service.
Final Average Compensation (FAC)
Your last five years of earnings are averaged to determine your FAC. Earnings used to calculate your FAC are gross earnings, before deferred compensation or other income withholding.
Types of compensation included in your FAC. The types of pay used to calculate your final average compensation can include:
The pension factor is calculated at 2 percent for your first 25 years of service. For each year over 25 years of service, the pension factor declines by 0.4 percent until it reaches 0 percent at 30 years of service. The reduced pension factor applies only to years 26 through 30, not the first 25 years.
Years of Service (YOS)
Your years of service used to calculate your pension reflect the years, or fractions of years, you have worked for the state police. In general, you earn one year of service when you work 2,080 hours. Click Your Plan > Earning Service Credit to learn more about earning service.