- IPERS's example: by waiting six months, from December 2022 to June 2023, Steve met the Rule of 88 at 61 with 27 years. His benefit rose from $25,606.80 to $29,160 a year. That's $296.10 more a month, or $71,064 over 20 years.Member Handbook (2025), p. 43, Example 2
- Each extra year of work up to 30 adds 2 points to your multiplier, and each year from 31 to 35 adds 1 point. Working longer can also shrink or end an early-retirement reduction.Member Handbook (2025), pp. 42-43
- IPERS uses at most 35 years (140 quarters) of Regular service. Your multiplier doesn't grow for work beyond 35 years.Member Handbook (2025), p. 40
- If you start benefits at 70 or older while still working for an IPERS-covered employer, then stop working and ask for a recalculation, IPERS may adjust your benefit for the extra service and salary.Member Handbook (2025), p. 40, Recalculation of Benefits
IPERS's example: Steve waits six months
| Steve starts | Service | Multiplier | A year |
|---|---|---|---|
| December 2022age 61, early | 26.5 | 53%−10.53% | $25,606.80 |
| June 2023age 61, the Rule of 88 | 27 | 54%no cut | $29,160.00 |
Six more months gave Steve 61 + 27 = 88, so the Rule of 88 ended his cut. He gets $3,553.20 more a year ($296.10 a month), or $71,064 over 20 years. IPERS shows $3,553.20, $296.10 and $71,064. Member Handbook (2025), p. 43, Example 2: Retirement Benefits Payable at Normal Retirement Age
Reaching the Rule of 88
Our engine, not an IPERS example: 30 years at 57 (87 points) on a $62,000 average salary.
| Start | Points | Monthly |
|---|---|---|
| August 2027as planned | 87−25.5% | $2,310 |
| August 20281 more year | 89no cut | $3,152+$842 |
| August 20292 more years | 91no cut | $3,203+$52 |
Already at a full benefit
Our engine: age 63 with 28 years on $60,000. The gain drops to half after 30 years.
| Service | Multiplier | Monthly |
|---|---|---|
| 28 yearsJuly 2027 | 56% | $2,800 |
| 29 yearsJuly 2028 | 58% | $2,900+$100 |
| 30 yearsJuly 2029 | 60% | $3,000+$100 |
| 31 yearsJuly 2030 | 61% | $3,050+$50 |
| 32 yearsJuly 2031 | 62% | $3,100+$50 |
These keep the average salary the same. A raise in your last five years would add more. Try your own numbers in the calculator; its "Start as planned, or work longer?" card does this for you. See also the early-retirement cut.
Common questions
How much does one more year add to an IPERS pension?
Up to 30 years, each year adds 2% of your average salary a year; from 31 to 35 years, 1%. On a $60,000 average salary that's $100 or $50 a month. If you'd retire early, a year can also shrink or end the early cut.
Can a few months make a big difference?
Yes, if they get you to the Rule of 88 or 62/20. In IPERS's example, Steve waited six months and his benefit rose from $25,606.80 to $29,160.00 a year.
Source: IPERS Member Handbook, Updated July 2025, pp. 35, 40, 42-43. Last reviewed .