Estimating Your Retirement Benefit

Your SCERS retirement benefit is based on a formula—not an account balance. That means the longer you work and the more you earn, the more your monthly benefit will grow.

This section explains how the benefit is calculated and how you can estimate your own using SCERS tools. 

The SCERS Benefit Formula

Your monthly benefit is calculated using the following formula:

Age Factor × Years of Service Credit × Final Compensation

Age Factor

You receive an incremental age factor adjustment for each quarter of a year increase in your age. Depending on your Membership Category and Benefit Tier, this factor also serves to increase the value of your benefit with SCERS –up to the following ages at which the maximum factors apply:

Years of Service Credit

You earn credit for each pay period you work and contribute in a SCERS-covered position:

• One year of full-time work = one year of credit
• Part-time work earns proportional credit
• Some unpaid time may be eligible for purchase

Final Compensation

Your average compensation over a consecutive period during your most recent work history, based only on pension-eligible pay. 

Social Security Reduction Factor

If you also pay into Social Security (FICA deduction) for your SCERS-covered employment, your SCERS service is “integrated” with Social Security. As a result, your Member Contributions paid to SCERS while an active member are slightly lower than they would be without integration. As a result, your monthly retirement benefit is reduced slightly by the Social Security Reduction factor.

Federal Government Compensation and Benefit Limitations

If your Membership Date is on or after July 1, 1996, Section 401(a)(17) of the Internal Revenue Code (IRC) limits the annual compensation that SCERS may use in the calculation of benefits. This means your Final Compensation cannot be greater than the amount of the IRC 401(a)(17) limit for the calendar year in which you retire. The limit amount is set by federal law and is periodically adjusted for inflation. If your Membership Date is prior to July 1, 1996, you are “grandfathered” and your Final Compensation will be subject to a different limit.

In addition, Section 415(b) of the Internal Revenue Code limits the annual benefit amount SCERS may pay to a Retired Member. If your Membership Date is on or after January 1, 1990, or you received a benefit enhancement on or after this date, you will be subject to this annual benefit limit. The limit is set by federal law and is periodically adjusted for inflation.

Because SCERS is a tax-qualified retirement plan, it must adhere to the federal limit on benefit payments. However, Section 415(m) of the Internal Revenue Code allows members subject to the 415(b) benefit limit to receive a separate benefit payment directly from the employer for the difference between the member’s earned benefit amount and the 415(b) limit, if the employer adopted a replacement benefit plan prior to January 1, 2013.

Tools for Estimating Your Benefit

SCERS provides two calculators to help you project your future monthly retirement income:

1. Personalized Estimator (via MySCERS)

Available to registered users of MySCERS, this tool:

• Pre-populates your service credit, tier, and other payroll data
• Allows you to enter a retirement date and future work schedule 
• Provides results for two payment options:
  • Unmodified: Provides the highest monthly benefit and includes a continuing survivor benefit of 60% for an eligible spouse, domestic partner, or minor child(ren) if no eligible spouse or partner.
  • Option 1: Provides a monthly benefit that is nominally less than the Unmodified benefit and offers no continuance. Your beneficiary receives a refund of remaining contributions if you pass away

Once the initial estimate is calculated, you can add spouse or domestic partner information. This will present two additional payment options: 

• Option 2: Provides monthly payments that are noticeably less than the Unmodified benefit and offers a 100% continuance to an eligible spouse, registered domestic partner, or other named beneficiary with an insurable interest in your life.  
• Option 3: Provides monthly payments that are noticeably less than the Unmodified benefit and offers a 50% continuance to a spouse, registered domestic partner, or other named beneficiary with an insurable interest in your life.  

You can run multiple estimates by entering different retirement dates manually.

This is the most accurate tool available, as it uses your actual SCERS record.

2. Guest Estimator (via www.scers.gov)

Available to users of scers.gov, where you must enter: 

• Your estimated retirement age
• Years of service credit
• Final compensation

The results are more general and may not reflect specific tier rules or interest-credited purchases.

Use this tool if you’re exploring SCERS benefits for the first time or aren’t registered for MySCERS yet.

Things to Keep in Mind

• The estimator does not show side-by-side comparisons of multiple dates—you’ll need to run them manually.
• Your benefit will be paid monthly for life and may include cost-of-living adjustments (COLAs), depending on your tier and SCERS policy. 
• Calculator estimates do not include tax withholding or other post-retirement employer benefit deductions that may apply to you.