The handbook's example
A member retiring July 1, 2025 at 62 with 35 years and a $40,000 final average salary: 2% × 35 × $40,000 ÷ 12 = $2,333.33 a month. The handbook rounds it to $2,333. Member Handbook (2025), p. 7 ($2,333 per month)
TRS of Oklahoma's seminar slides use 20 years on $50,000: $1,666.67 a month, which they show as $1,667 ($20,004 a year). Retirement seminar slides, slide 18 ($1,667 per month / $20,004 annual, rounded to whole dollars)
What each year is worth
Each year of service adds 2% of your final average salary a year: on $50,000, that's $83.33 a month for life. Retiring before a full benefit cuts the result by an early-retirement factor, and which group you're in decides when that applies.
| Final average salary | 20 yrs | 25 yrs | 30 yrs | 35 yrs |
|---|---|---|---|---|
| $40,000 | $1,333 | $1,667 | $2,000 | $2,333 |
| $50,000 | $1,667 | $2,083 | $2,500 | $2,917 |
| $60,000 | $2,000 | $2,500 | $3,000 | $3,500 |
| $70,000 | $2,333 | $2,917 | $3,500 | $4,083 |
Monthly Maximum Option at a full benefit, from our engine on the 2% formula. Service before July 1995 may be figured on a capped salary: see Salary caps and EESIP.
Your final average salary
- Joined before July 1, 1992: your final average salary is your highest three salaries. Joined on or after July 1, 1992: your highest five consecutive salaries.Member Handbook (2025), p. 17, How is my Final Average Salary (FAS) calculated?
- The salary counted is regular annual compensation: salary plus employer-paid fringe benefits, including pay for extra duties. Expense reimbursements, national certification stipends, unused leave payouts and retirement or termination payments don't count.Member Handbook (2025), p. 8, What is Regular Annual Compensation?
- Your TRS of Oklahoma member service statement shows your 'tier totals': years with capped salaries (before July 1995) and uncapped years.Retirement seminar slides, slides 23-24
Your service
- Service credit includes contributions-based service, purchased service and unused sick leave: 120 days of unused sick leave equals one year, and fewer days count as days divided by 120.Member Handbook (2025), pp. 12-14
From July 1, 2019, service credit = full-time-equivalent percentage x employment-year percentage; full time is at least 6 hours a day, 30 hours a week, 8 months a year. Credit under 1.0 for service on or after July 1, 2016 is rounded to the nearest tenth. Member Handbook (2025), p. 13, Service Credit On or After July 1, 2019
Before July 1, 2013: at least 30 hours a week and $4,000 a year earned a full year (120 workdays minimum); fractions from different school years could combine to 6 full months for one year. From July 1, 2013 fractional credit is added together and used in the formula. Member Handbook (2025), pp. 12-13, Full-Time Service; Combined Service
120 days of documented unused sick leave = one year of credit; since Aug. 1, 2012 fewer than 120 days count as days / 120. Sick leave over 120 days, donated leave, and accrual over 15 days a year don't count. Sick leave credit doesn't count toward vesting. Member Handbook (2025), pp. 13-14, Sick Leave Credit; p. 9; OAC 715:10-7-1(e)
Total creditable service is determined to the tenth of a year, rounded down. OAC 715:10-15-8 (rules eff. 9/1/25, p. 72)
The minimum benefit
If a classified employee's average salary is under $6,500 the allowance is $10.83 a month per year of service; non-classified under $5,350, $8.91. OAC 715:10-15-9 (rules eff. 9/1/25, p. 72)
TRS of Oklahoma examples round each tier to cents (handbook) or to whole dollars (slides); no rounding rule is stated. The engine rounds the monthly total to cents.
We round the monthly total to the cent. TRS of Oklahoma's examples round each piece to cents or whole dollars, so ours can differ by a few cents.
What would settle it: A TRS of Oklahoma estimate showing intermediate amounts.
Run your own numbers in the calculator, or see what one more year adds.
Questions
What is the TRS of Oklahoma benefit formula?
2% × years of service × final average salary ÷ 12 = your monthly Maximum Option. For example, 35 years on $40,000 is about $2,333 a month.
Does sick leave count toward my TRS of Oklahoma pension?
Yes. 120 days of unused sick leave adds one year of service, and fewer days count as days divided by 120. It doesn't count toward vesting.
Source: Member Handbook, Teachers' Retirement System of Oklahoma, Plan provisions as of July 1, 2025, pp. 7, 8, 9, 12, 12-13, 12-14, 13, 13-14, 17, 17-18, 18. Also: Retirement seminar slides; TRS of Oklahoma rules, OAC 715:10-7-1, 715:10-13-4, 715:10-15-8, 715:10-15-9; 70 O.S. § 17-116.2. Last reviewed .