The handbook's worksheet
| Final average salary | $50,000 |
|---|---|
| × 1.1% (the multiplier) | $550 |
| × 30 years of service | $16,500 a year |
| ÷ 12 | $1,375 a month |
That $1,375 is the Five-Year Certain and Life amount (Option A-1), TRF's standard way of paying. Retiring early or choosing a different option changes it. Payment options.
An unreduced pension is at least $185 a month. Hybrid Handbook p. 35, §7.11 Minimum Retirement Pension Benefit
The $185 monthly minimum is for retirees getting an unreduced pension. The handbook doesn't say how it works with survivor options.
We apply it only to unreduced pensions, on the Five-Year Certain and Life amount.
Hybrid Handbook p. 35, §7.111. Final average salary
Final average earnings are the highest five years of compensation in a TRF Hybrid-covered position; they need not be continuous. Included: W-2 gross compensation for covered employment, pre-tax contributions paid by your employer, amounts deferred under IRC 125/403(b)/457, pay you would have had on unpaid leave while serving in an elected position, severance paid in contemplation of retirement up to $2,000, legal settlement or back pay allocated to the year earned, and military differential wage payments on/after Jan. 1, 2009. Pay from two or more employers is combined if all required contributions were made and at least one position normally required more than 600 hours a year. Hybrid Handbook p. 31, §7.5 Final Average Earnings Calculation
Compensation is subject to the IRC 401(a)(17) annual limit, which changes yearly (see irs.gov). The handbook gives no dollar amount. Hybrid Handbook p. 13, §3.4
SEA 14-2026 changes the average annual compensation (greater of highest 5 calendar or 5 fiscal years) and excludes compensation in contemplation of retirement over 120% of the prior year, for NON-TEACHER members retiring after Dec. 31, 2027. INPRS 2026 Legislative Updates (July 9, 2026), SEA 14, Average of the Annual Compensation
The handbook says your average uses your highest five years of pay. It doesn't say whether those are school (July-June) years or calendar years, or how a part year counts.
We use the yearly average you enter. Your annual member statement or INPRS can confirm it.
Hybrid Handbook p. 31, §7.52. The multiplier
1.1% for each year, the same for everyone in TRF Hybrid. Hybrid Handbook p. 29, §7 Pension Benefits; p. 30, §7.4 Table 1 Pension Benefit Calculation Worksheet Example
3. Years of service
One year of service for 120 or more days worked in a fiscal year (July 1-June 30); a half year for 60 to 119 days. Any time worked in a day counts as a full day. No more than one year in a fiscal year. Hybrid Handbook p. 14, §4 Service Credit
Purchased service counts in the formula. Buying service credit.
Plus your DC account
The formula is the pension only. Your DC account (the old ASA) is paid on top. What's in it.
From the sources
- Pension = average of your highest 5 years of pay x 1.1% x years of service. Divide by 12 for the monthly amount. In the handbook's example, $50,000 x 0.011 = $550, times 30 years = $16,500 a year, or $1,375 a month.Hybrid Handbook p. 30, §7.4 Table 1
- The formula gives the Five-Year Certain and Life amount (Option A-1). Early retirement reductions and the other payment options change it.Hybrid Handbook p. 29, §7; p. 30, Table 1
- An unreduced pension is at least $185 a month (since July 1, 2017).Hybrid Handbook p. 35, §7.11
- Your final average uses your highest 5 years of pay in covered work, and the years don't have to be in a row. It counts W-2 pay, pre-tax contributions your employer pays, 125/403(b)/457 deferrals, up to $2,000 of severance, back pay allocated to the year it was earned, and military differential pay.Hybrid Handbook p. 31, §7.5
- Pay from two or more TRF/PERF employers in the same year is added together if all contributions were made and at least one job normally needed more than 600 hours a year. The IRS yearly pay limit also applies.Hybrid Handbook p. 31, §7.5; p. 13, §3.4
Questions
What is the TRF multiplier?
1.1% for every year of service, for both the Pre-'96 and '96 Accounts.
Which years count in my final average?
Your 5 highest-paid years in covered work. They don't have to be in a row.
Is there a minimum pension?
Yes: $185 a month for an unreduced pension.
Source: Teachers' Retirement Fund Hybrid Plan Member Handbook, Effective 07/01/2025, pp. 13, 14, 29, 30, 31, 35. Last reviewed .