Arizona · ASRS · Formula

How ASRS figures your check

Three numbers: your years of service, a multiplier set by those years, and your average monthly pay.

The formulaYears of credited service × graded multiplier × average monthly compensation = your monthly straight life annuity.ASRS Estimate Your Benefits page, Benefit Formula; ASRS Employer Basics 2025, p. 8; A.R.S. 38-757(B)

The graded multiplier

Your total credited service picks the multiplier. It applies to all of your years, not just the years in each band.

The graded multiplier (Arizona ASRS)
Total credited serviceMultiplier
Up to 19.99 years2.10%
20 to 24.99 years2.15%
25 to 29.99 years2.20%
30 or more years2.30%
ASRS Estimate Your Benefits page, Graded Multiplier Table; ASRS Employer Basics 2025, p. 9; A.R.S. 38-757(B)(1)(a)-(d)

Each month in which a member contributes counts as one month of service credit (the smallest unit is one month); school employees earn a full year in 9 months; no more than 1.0 year in a fiscal year. Service is awarded in the month contributions are reported. So the band edges never need rounding. ASRS Employer Basics 2025, p. 9; ASRS Estimate Your Benefits page, Years of Service; A.R.S. 38-739(A)-(C)

ASRS's own example21 years × 2.15% × $2,800 average monthly compensation = $1,264.20 a month.ASRS Session 1, slide 21; A.R.S. 38-757(B)
Another example30 years × 2.30% × $5,000 average monthly compensation = $3,450 a month for life.ASRS Estimate Your Benefits page, Benefit Formula; ASRS Employer Basics 2025, p. 8; A.R.S. 38-757(B)
Crossing a band19 years × 2.10% × $5,000 = $1,995. One more year: 20 years × 2.15% × $5,000 = $2,150, $155 more a month.ASRS Estimate Your Benefits page, Benefit Formula; ASRS Employer Basics 2025, p. 8; A.R.S. 38-757(B)(1)

How much of your pay it replaces

ASRS's Wage Replacement Rates table: years of service x graded multiplier = percent of average monthly compensation paid. It assumes normal retirement; an early reduction lowers it.

How much of your pay it replaces (Arizona ASRS)
Years of serviceMultiplierShare of average pay
52.10%10.50%
102.10%21.00%
152.10%31.50%
202.15%43.00%
232.15%49.45%
252.20%55.00%
272.20%59.40%
302.30%69.00%
322.30%73.60%
ASRS Estimate Your Benefits page, Wage Replacement Rates table; A.R.S. 38-757(B)(1)

Average monthly compensation

What counts as pay

A.R.S. 38-711(7)(a)-(b)

Minimum and maximum

A retired member who is at least 75 and retired with at least 20 years of credited service gets at least $600 a month. A beneficiary aged 75+ of such a member gets $600 reduced by the option's actuarial figure and percentage. Not available after a 38-764(C) lump sum. A.R.S. 38-768(A)-(D)

Federal IRC 415(b) limit: the employer-provided straight life annuity may not exceed $160,000 a year as adjusted by the U.S. Treasury, with reductions for under 10 years of membership and for benefits starting before 62, and increases after 65. Compensation counted is capped at $200,000 (from July 1, 2002) as adjusted under IRC 401(a)(17), or $235,840 (adjusted) for members who joined before July 1, 1996. A.R.S. 38-769(A)-(C); A.R.S. 38-746(A), (D)-(E)

On reaching the normal retirement date the right to the normal retirement benefit is nonforfeitable by an employer or ASRS (except under A.R.S. 13-713). A.R.S. 38-757(A)

From ASRS and the law

Crossing a band is why one more year can be worth so much. Retiring before your normal retirement date adds an early-retirement cut, and the straight life amount is what the payment options are reduced from. Try the calculator with an example already filled in.

Questions

Does the higher multiplier apply to all my years?

Yes. Your total credited service picks one multiplier, and it applies to every year (ASRS Estimate Your Benefits page, Benefit Formula; ASRS Employer Basics 2025, p. 8; A.R.S. 38-757(B)(1)). So crossing 20, 25 or 30 years raises the rate on all your service.

Is there a cap on my ASRS pension?

The ASRS law sets no percentage-of-AMC cap on the formula; the only maximum is the federal IRC 415 limit in A.R.S. 38-769. (A.R.S. 38-757(B); A.R.S. 38-769)

Run your own numbers → What one more year adds

Source: ASRS Employer Basics 2025 handbook, March 2025 edition, saved Nov. 12, 2026; with other ASRS publications and the Arizona Revised Statutes, pp. 8, 9. Also ASRS Basics for Employers, Session 1: Intro to ASRS (slides), slide 21. Also ASRS web page: Retirement Eligibility. Also ASRS web page: Estimate Your Benefits. Also A.R.S. 38-711, 38-739, 38-746, 38-757, 38-760, 38-768, 38-769 (Arizona Revised Statutes, Title 38, Ch. 5, Art. 2). Last reviewed .