An example
A member who is 57 with 27 years and a $60,000 average salary. Each row works one more year. Salary stays the same.
| Retire at | Service | Early cut | Monthly check | More than now |
|---|---|---|---|---|
| 57 (now) | 27 years | −21% | $2,133 | — |
| 58 (+1 yr) | 28 years | −14% | $2,408 | +$275 |
| 59 (+2 yr) | 29 years | −7% | $2,697 | +$564 |
| 60 (+3 yr) | 30 years | none | $3,000 | +$867 |
Our example, worked with the TRS of Georgia rules. Member's Guide p. 6, Retirement Benefit Formula; Member's Guide p. 5, Eligibility for Retirement Benefits: Service Retirement
Sick leave can be your "extra year"
Unused sick leave counts toward 30 years. 20 days = 1 month of service; 9 months = 1 year. Member's Guide p. 17, Unused Sick Leave See Buying service credit for the conversion chart.
Two more things an early retirement changes
- Your first COLA. If you retire on service retirement with less than 30 years and under age 60, you may get your first COLA only after you reach age 60 or would have reached 30 years of service, whichever comes first. Member's Guide p. 22, Cost-of-Living Adjustments When the first COLA comes at a normal retirement is on the COLA page.
- The PLOP. The partial lump sum is only for a normal service retirement (30 years, or 10 years and age 60), not an early one. One more year can make it available. See PLOP. Member's Guide p. 13, Partial Lump-Sum Option (PLOP)
What the guide says
- Each extra year of service adds 2% of your final average salary to your monthly benefit, up to 40 years.Member's Guide p. 6, Retirement Benefit Formula
- If you're between 25 and 30 years and under 60, working longer also shrinks or removes the early retirement reduction: up to 7% for each year.Member's Guide p. 5, Eligibility for Retirement Benefits
- Unused sick leave can push you over 30 years. For example, 29 years plus 1 year of sick leave credit is 30 years, penalty free. Ask TRS of Georgia for a sick leave estimate first.Member's Guide p. 18, Unused Sick Leave: Note
- With 40 years of service you may stop contributing, but continuing on raises may lift your 2-year average.Member's Guide p. 11, 40 Years of Service
Questions
What does one more year add?
2% of your final average salary, every month for life. On a $60,000 average that's $100 a month for each extra year.
Is it worth more if I'd retire early?
Yes. If you're under 60 with less than 30 years, each year also shrinks the early cut by up to 7 points.
Does a raise help?
Yes, if it lifts your 2 highest years in a row. Your average is based on those 2 years.
Source: Teachers Retirement System of Georgia Member's Guide, 06/26, pp. 5, 6, 11, 13, 17, 18, 22. Last reviewed .