How are retirement annuities determined?
SERS is a defined benefit plan, which means that members benefits are calculated by a formula based on an individuals credited service, Final Average Salary and Class of Service Multiplier, not on the performance of the Fund or the employers contribution rate. The basic formula is: The Class AA benefit accrual rate is 2.5 percent of Final Average Salary for each year of credited service. If you elect early retirement, you will receive a reduced pension.
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