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NY Teacher Pension Calculations Made Simple

NY Teacher Pension Calculations Made Simple

| February 22, 2023


Preparing for retirement requires a lot of planning and financial strategy.

Most NYSTRS members will receive a service retirement benefit upon completion of their public service careers.

Eligibility for retirement, disability, and death benefits for members depends on factors such as tier of membership, age, earnings and service credit. We help explain how you can calculate your maximum annual pension.


Pension Calculation Formula

Your Maximum annual pension is determined by the following formula:

Pension Factor x Age Factor (if applicable) x Final Average Salary = Maximum Annual Pension

To better understand this formula, it’s important to be able to grasp the terminology used to describe the information needed to determine what you can expect your maximum annual pension benefit to be during your retirement.

  • The pension factor, is a percent based on your years and months of service credit, and typically increases with additional service.
  • Depending on your age and service credit at retirement, an age factor may be applied to your benefit calculation.
  • The final average salary (FAS) is the average of your highest three consecutive school years of salary earned whenever they occurred in your salary history, which is typically the average of your last three years.



 Determine Your Pension Factor

Your membership tier determines your pension factor. Current teachers likely fall in Tier 4, 5, or 6. Use the charts below to determine your pension factor.



  Compute the Final Average Salary (FAS)

This is the average of your highest three consecutive school years of salary earned whenever they occurred in your salary history. Typically, it is the average of your last three years. Tier 6 members must use a five-year FAS. Reference the Active Members’ handbook for details on what your FAS can and cannot include.


  Calculate the Pension

Multiply your pension factor (Step 1) by your FAS (Step 2). This is your Maximum annual retirement benefit paid to you in 12 monthly payments. At retirement, you choose either the Maximum benefit or an option that could provide payment to your beneficiary. See your Benefit Payment Choices in your Active Members’ Handbook.


Rest assured, we are here to help you every step of the way. Retirement planning takes knowledge and experience. Please don’t hesitate to CONTACT US. One of our Financial Professionals will be happy to help answer any questions you have about your retirement plan.


SOURCE: New York State Teachers’ Retirement System Active Members’ Handbook

The Lincoln Investment family of companies nor any of its representatives is affiliated with the New York State Teachers' Retirement System; and NYTRS does not sponsor, authorize or endorse the retirement educational services described in this or other communications of Lincoln Investment.