How is the adjusted minimum benefit determined?
We begin with a base benefit of $1,030 (as of July 1, 2006) and then apply any adjustments made to the account (for instance, survivor options, early retirement or an annuity withdrawal) to determine the adjusted minimum benefit. That amount is then compared to your current benefit. You will receive the greater of the two benefits. Here’s an example of how those calculations work: Mary retired in July 1986 with 25 years of service credit and an Average Final Compensation (AFC) of $925. She selected a 50 percent survivor benefit option. Her retirement benefit was determined as follows: 2% x $925 AFC x 25 years of service credit x .87 (reduction factor for survivor benefit option) = $402.38 Since she retired, Mary has received COLAs totaling $480, increasing her current benefit to $882.38 ($402.38 + $480). Mary becomes eligible for the adjusted minimum benefit in July 2006. To determine if the adjusted minimum benefit exceeds her current benefit, DRS will multiply the base benefit of $1,
