The two formulas
| Plan | Yearly pension | Average pay |
|---|---|---|
| ACPS | 1.2% × AFC × years through June 30, 1998 + 1.8% × AFC × years after | Highest 3 years in a row |
| RCPB | 1.5% × AFC × years | Highest 5 years in a row |
Divide the yearly amount by 12 for your monthly Basic Allowance: the most you can get, paid for your life only. "AFC" is average final compensation.
The handbooks' examples
Total $41,184 a year ÷ 12 = $3,432 a month.ACPS Handbook p. 22, Example: Normal Service Retirement
Our calculator gets the same results for both examples.
Average final compensation
Average annual earnable compensation during the 3 consecutive years that give the highest average. A raise over 20% (other than a promotion or election to public office) is generally left out unless including it would raise the allowance by $25 or less, or the Board decides it is not an 'extraordinary salary increase'. ACPS Handbook p. 21, Key Elements of the Benefit Formula; p. 38, Glossary
RCPB: the average annual earnable compensation during the 5 consecutive years that give the highest average, with the same 20% extraordinary-increase rule as the ACPS. RCPB Handbook p. 21, Key Elements of the Benefit Formula; p. 36, Glossary
How service is counted
All TPS members, whether employed 10, 11 or 12 months a year, participate as 10-month members: a full year is September through June, and each month is one-tenth of a year. No more than 1 year of credit for a calendar year. ACPS Handbook p. 6, Membership Credit; RCPB Handbook p. 6
One year of eligibility service in any fiscal year with at least 500 regular hours (no overtime). Under 500 hours: hours / 500 x 10 months, partial months rounded up (420 hours = 8.4, rounded up to 9 months). ACPS Handbook p. 6, Eligibility Service; RCPB Handbook p. 6
Eligibility service decides when you can retire. Creditable service decides how much you get. They're usually the same. Unused sick leave and some purchased service add only creditable service. Buying service and sick leave
ACPS service before July 1998
Service through June 30, 1998 gets 1.2% unless the former Non-Contributory formula (0.8% of AFC up to the Social Security Integration Level plus 1.5% of AFC above it) is greater. The handbook says 1.2% is greater for almost all members and shows only 1.2% in its examples. ACPS Handbook p. 21, Normal Service Retirement
We use 1.2% for service through June 1998; the handbook says this is greater for almost all members.
What we use: 1.2% only. (The engine can compute the alternative from an SSIL, but the calculator does not ask for one.)
What the handbooks say
- ACPS yearly benefit = 1.2% x AFC x years of creditable service through June 30, 1998, plus 1.8% x AFC x years after June 30, 1998. Divide by 12 for the monthly Basic Allowance.ACPS Handbook p. 21, Normal Service Retirement; SPP §23-401(d)
- For service through June 1998, the law gives the greater of 1.2% or the old Non-Contributory formula (0.8% of AFC up to the Social Security Integration Level plus 1.5% above it). The handbook says 1.2% is greater for almost all members.ACPS Handbook p. 21, footnote
- Example (ACPS): age 62, 28 years (6 before July 1998, 22 after), AFC $88,000: 1.2% x 88,000 x 6 + 1.8% x 88,000 x 22 = $41,184 a year, or $3,432 a month.ACPS Handbook p. 22, Example: Normal Service Retirement
- RCPB yearly benefit = 1.5% x AFC x years of creditable service. Example: age 65, 28 years, AFC $88,000 = $36,960 a year, $3,080 a month.RCPB Handbook p. 21, Normal Service Retirement; SPP §23-401(f)(2)
- Former components used other multipliers: the Contributory Pension Benefit paid 1.4% for service after June 1998 (for members who left before June 30, 2006); the Non-Contributory Pension Benefit used 0.8%/1.5% around the Social Security Integration Level (members who left before July 1998).ACPS Handbook PDF p. 3 (unnumbered); SPP §23-401(b), (c)
- Every TPS member earns service as a 10-month member: a full year is September through June, and each month counts as one-tenth of a year, whether you work 10, 11 or 12 months.ACPS Handbook p. 6, Membership Credit
- ACPS: Average Final Compensation (AFC) is your average earnable compensation over the 3 consecutive years that give the highest average. RCPB: the 5 consecutive highest years.ACPS Handbook p. 21 and p. 38, Glossary; RCPB Handbook p. 21 and p. 36; SPP §20-205, §20-205.1
- A raise of more than 20% is generally left out of AFC unless it came from a promotion or election to public office, adds $25 or less to your allowance, or the Board decides it isn't an 'extraordinary salary increase'.ACPS Handbook p. 21, Key Elements of the Benefit Formula
- Earnable compensation is your annual salary rate for working the normal time in your position; paid overtime does not count toward service.ACPS Handbook p. 38, Glossary; p. 6, Membership Credit
Questions
What is the Basic Allowance?
The largest monthly pension TPS pays, for your life only. Survivor options pay less so someone can be covered after you die.
What is average final compensation (AFC)?
Your average yearly pay over the 3 (ACPS) or 5 (RCPB) years in a row that give the highest average. A raise over 20% is usually left out unless it came from a promotion.
Why does service before July 1998 count less?
ACPS members earn 1.2% for each year through June 30, 1998, and 1.8% for each year after. That's how the law set up the ACPS.
Does unused sick leave count?
Yes, it adds creditable service if you retire within 30 days of leaving work. It raises your check but doesn't help you qualify to retire.
Source: SRPS Benefits Handbooks: Teachers' Pension System (Alternate Contributory Pension Selection; Reformed Contributory Pension Benefit), Revised April 2021, ACPS Handbook PDF p. 3, pp. 6, 21, 22, 38; RCPB Handbook pp. 6, 21, 36; SPP §§ 20-205, 20-205.1, 23-401. Last reviewed .