What does one more year add to a URS pension?
Short answer: another year of service in the formula (2% of your average in Tier 1, 1.5% in the Tier 2 Hybrid), which is $100.00 or $75.00 a month on a $60,000 average. If you'd retire early, the year also raises your reduction factor, and reaching 30 years (Tier 1) or 35 (Tier 2) removes the reduction. See the formula, the early-retirement factors and retiree health. Load our Tier 1 or Tier 2 example in the calculator.
The two examples below are ours, run on URS's rules and factors, not URS's own examples. They hold salary flat, so a raise would add more through your highest-3 or highest-5-year average.
- In Tier 1, between 60 and 65 each extra year adds a year of service and removes 3 points of reduction; reaching 30 years removes it entirely. Example: at 60 with 27 years you'd get 85%, then 88% at 61, 91% at 62 and 100% at 63 with 30 years.Utah Code 49-13-402(2); URS Actuarial Valuation (Jan. 1, 2025), App. 2, p. 97
- In the Tier 2 Hybrid, each year closer to 65 is worth more: the factor rises from 61.75% at 60 to 90.51% at 64 and 100% at 65 (or at 35 years).URS Actuarial Valuation (Jan. 1, 2025), App. 2, p. 117
Tier 1: 60 with 27 years
Our engine on URS's rules, not a URS example: a member who is 60 with 27 years on a $60,000 final average salary, salary held the same.
| Retire at | Years | You keep | Monthly |
|---|---|---|---|
| 60as planned | 27 | 85% | $2,295 |
| 611 more | 28 | 88% | $2,464+$169 |
| 622 more | 29 | 91% | $2,639+$344 |
| 633 more | 30 | 100% | $3,000+$705 |
Tier 2 Hybrid: 61 with 21 years
Our engine again: 61 with 21 years on $60,000. Tier 2 needs 35 years for a full benefit before 65, so here the reduction ends only at 65.
| Retire at | Years | You keep | Monthly |
|---|---|---|---|
| 61as planned | 21 | 67.8% | $1,068 |
| 621 more | 22 | 74.54% | $1,230+$162 |
| 632 more | 23 | 82.07% | $1,416+$348 |
| 643 more | 24 | 90.51% | $1,629+$561 |
| 654 more | 25 | 100% | $1,875+$807 |
Once you're at a full benefit
Each extra year adds only the formula: $100.00 a month in Tier 1 and $75.00 in Tier 2 on a $60,000 salary, plus whatever a raise does to your highest-3 or highest-5 average. Tier 1 Highlights (2026-27), p. 15; Utah Code 49-13-402(2); Tier 2 Highlights (2026-27), p. 15; Comparing Tier 2 Plans (2026-27), pp. 5, 11; Utah Code 49-22-305(2)
Earliest and full-benefit dates assume one year of service per year worked from the date you enter.
One year of service per year of work.
What would settle it: Your URS annual statement and a URS estimate.
Run your own numbers in the calculator: its "Retire as planned, or work longer?" card shows 1, 2 and 3 more years.
Questions
What does one more year add to a URS pension?
A year of service (2% of your final average salary in Tier 1, 1.5% in the Tier 2 Hybrid), and, if you're retiring early, a higher reduction factor. Reaching 30 years (Tier 1) or 35 years (Tier 2) removes the reduction entirely.
Is it worth working from 60 to 65 in Tier 1?
Each year from 60 to 65 removes 3 points of reduction and adds a year of service, unless you reach 30 years first, which ends the reduction.
Source: URS Tier 1 Noncontributory and Tier 2 Public Employees Retirement System Highlights, 2026-27, effective July 1, 2026, Tier 1 p. 15; Tier 2 p. 15. Also: Comparing Tier 2 Plans (2026-27); URS Actuarial Valuation (Jan. 1, 2025); Utah Code §§ 49-13-402, 49-22-305. Last reviewed .