Calculating Your Pension Benefit
The service pension benefit for General Government employees is calculated at the flat rate of:
1.75% x Final Average Earnings x Years of Credited Service
The service pension benefit for Police and Fire employees is calculated at the flat rate of:
2.0% x Final Average Earnings x
Years of Credited Service Up To 25 Years
PLUS
1.75% x Final Average Earnings x Years of Credited Service Over 25 Years
Final Average Earnings is your earnings for the highest 60 consecutive months worked at Metro, divided by five (years). For example, let's say your earnings for the last 15 years were as follows:
| Year | Earnings |
|---|---|
| Year 1 | $20,000 |
| Year 2 | $21,500 |
| Year 3 | $23,000 |
| Year 4 | $24,500 |
| Year 5 | $26,000 |
| Year 6 | $27,500 |
| Year 7 | $29,000 |
| Year 8 | $30,500 |
| Year 9 | $32,000 |
| Year 10 | $33,500 |
| Year 11 | $35,000 |
| Year 12 | $36,500 |
| Year 13 | $35,000 |
| Year 14 | $33,500 |
| Year 15 | $32,000 |
The highest consecutive earnings occurred in Years 10 through 14. Your total earnings during this five-year period was $173,500. To calculate your Final Average Earnings, divide $173,500 by five (years) = $34,700.
Your annual normal retirement benefit is calculated by inserting the Final Average Earnings into the formula above. For example, let's say your Final Average Earnings is $34,700 (as calculated above) and you are a General Government employee with 25 years of credited service at retirement.
To calculate your normal retirement benefit, multiply 1.75% by $34,700, then multiply by 25 (years of credited service) = $15,181 per year (life annuity). To get your monthly benefit, divide by 12.
1.75% x $34,700 x 25 = $15,181 per year
$15,181 divided by 12 = $1,265.08 per month
Why different pension formulas and retirement ages?
Metro's pension plan gives Police and Fire employees an additional percentage for each year of service and allows them to retire earlier for a good reason:
- On average, their jobs are more dangerous, more physically demanding, and more emotionally stressful than other government jobs. As a result, they have shorter careers.
Our pension formula adjusts for that by giving Police and Fire employees the same proportion of salary at retirement as Metro employees in less stressful jobs. This is common practice in government, and has the backing and support of several federal laws.