Methodology & Formulas

This page documents the exact formulas and assumptions used by our calculator, aligned with MSRB rules. Results are estimates for planning; official determinations are made by MSRB.

Core Pension Formula

Annual Pension = Average Salary × Years of Service × Benefit Factor

  • Benefit Factor ranges ~2.0%–2.5% based on Group and age
  • 80% maximum cap applied before Option B/C reductions
  • Option C survivor benefit ~66.67%; reductions vary by ages

COLA

  • 3% applied to first $13,000 of annual allowance only
  • Maximum $390 per year ($32.50/mo), compounding annually

Service & Eligibility

  • Groups 1–4 minimum ages: 60, 55, any age w/20 years (Group 3), 50
  • Hire-date rules may affect minimum service and pro-rating
Use the Calculator•Groups 1–4•COLA Rules