The formula
Your average and your service come from ORBIT; sick leave and purchased service add to the years. Retire before you qualify for an unreduced benefit and an early-retirement reduction applies. The result is your maximum allowance before any payment option. Try it in the calculator (an example is filled in).
- Your yearly benefit is 1.82% of your average final compensation times your years and months of creditable service. Divide by 12 for the monthly amount.Handbook: Benefit Calculations, TSERS Retirement Formula
- Example: Mary retires at 60 with 32 years and six months and a $40,954 average. $40,954 x .0182 = $745.36, x 32.5 = $24,224.20 a year, or $2,018.68 a month.Benefit Calculation Worksheet, p. 1; Handbook: Benefit Calculations, Benefit Calculations Table
- At a $60,000 average, the handbook's examples come to about $2,275 a month at 60 with 25 years, $2,730 with 30 years and $3,640 with 40 years.Handbook: Benefit Calculations, Examples of Benefits Paid
The handbook's worksheet, step by step
| Step | What you do | Mary's numbers |
|---|---|---|
| 1 | Add your pay in your 4 highest-paid years in a row, divide by 4 | $39,988 + $40,484 + $41,350 + $41,994 = $163,816 ÷ 4 = $40,954 |
| 2 | Multiply by 1.82% (.0182) | $745.36 |
| 3 | Your creditable service | 32.5 years |
| 4 | Step 2 × Step 3 = yearly benefit | $24,224.20 |
| 5 | Divide by 12 = monthly benefit | $2,018.68 |
Mary retires at 60 with 32 years 6 months, so there's no reduction. The handbook prints $24,224.20 and $2,018.68; our engine gives the same. Handbook: Benefit Calculations, Benefit Calculations Table; Benefit Calculation Worksheet, p. 1
Monthly benefit by average, age and service
The handbook's "Examples of Benefits Paid" chart (Option 1, maximum allowance). Each cell shows the handbook's figure; where our engine differs by more than the dropped cents, both are shown.
| Average | Age 50, 20 yrs 50% kept | Age 55, 28 yrs 90% kept | Age 60, 25 yrs 100% kept | Any age, 30 yrs 100% kept | Any age, 40 yrs 100% kept |
|---|---|---|---|---|---|
| $30,000 | $455 | $1,146 | $1,137 | $1,365 | $1,820 |
| $35,000 | $530 | $1,337 | $1,337 ours $1,327 | $1,592 | $2,123 |
| $40,000 | $606 | $1,528 | $1,516 | $1,820 | $2,426 |
| $45,000 | $682 | $1,719 | $1,706 | $2,047 | $2,730 |
| $50,000 | $758 | $1,911 | $1,895 | $2,275 | $3,033 |
| $55,000 | $834 | $2,102 | $2,085 | $2,502 | $3,336 |
| $60,000 | $910 | $2,293 | $2,275 | $2,730 | $3,640 |
| $70,000 | $1,061 | $2,675 | $2,654 | $3,185 | $4,246 |
| $80,000 | $1,213 | $3,057 | $3,033 | $3,640 | $4,853 |
| $90,000 | $1,365 | $3,438 ours $3,440 | $3,411 ours $3,413 | $4,095 | $5,460 |
Three amounts in the handbook's 'Examples of Benefits Paid' chart don't match its own formula: $90,000 at 55 with 28 years and at 60 with 25 years, and $35,000 at 60 with 25 years ($1,337 printed; the formula gives about $1,327).
We use the formula.
Handbook: Benefit Calculations, Examples of Benefits PaidThe handbook doesn't say exactly how TSERS rounds. Its worksheet rounds 1.82% of your average to the cent before multiplying by service; its example chart drops the cents.
We follow the worksheet. Expect differences of a few cents to a dollar.
Benefit Calculation Worksheet, p. 1; Handbook: Benefit Calculations, Examples of Benefits PaidAverage final compensation
- Average final compensation is your average salary over your four highest-paid years in a row (48 consecutive months).Handbook: Benefit Calculations, TSERS Retirement Formula
- A final payout of unused vacation or prorated longevity inside those years can raise it. Sick leave payouts and expense reimbursements don't count.Handbook: Benefit Calculations, TSERS Retirement Formula
- Check with the Retirement SystemThe statute describes the period as four consecutive calendar years of membership service.G.S. 135-1(5)Handbook says 48 consecutive months; statute says calendar years.
- If you retire with an average of $100,000 or more (indexed yearly), the contribution-based benefit cap may apply. If you were hired before 2015, your employer pays any extra cost. If you were hired in 2015 or later, your employer may decline to pay, and then your benefit is reduced unless you pay.Handbook: Benefit Limitations, Contribution-Based Benefit Cap (CBBC)
The handbook says your average uses your four highest-paid years (48 months) in a row. The law says four consecutive calendar years.
We use the average you enter. Our worksheet helper uses four yearly salaries in a row.
Handbook: Benefit Calculations; G.S. 135-1(5)Creditable vs. membership service
Creditable service is all service credit that counts toward retirement: membership service you contributed for (not withdrawn), eligible purchased service, and eligible unused sick leave converted at retirement. The benefit uses years and months.
Age 65 / age 60 eligibility and vesting require five years of MEMBERSHIP service (contributing service). The 20/25/30-year tests use CREDITABLE service.
Handbook: Qualifying for BenefitsQuestions
What is the TSERS multiplier?
1.82% of your average final compensation for each year (and month) of creditable service.
What counts in average final compensation?
Your salary in your four highest-paid years in a row. A final payout of unused vacation or prorated longevity inside those years can raise it. Sick leave payouts and expense reimbursements don't count.
Is there a cap?
No dollar cap on your average. If it's $100,000 or more (adjusted each year), the contribution-based benefit cap may limit your benefit.
Source: TSERS Handbook, Online handbook, pages modified Nov. 2024 - Oct. 28, 2026 (retrieved Nov. 11, 2026), pages Benefit Calculations, Benefit Limitations. Also: N.C.G.S. 135-5(b21)(2)a, 135-1(5); Benefit Calculation Worksheet. Last reviewed .