Your Retirement Allowance Is NOT 100% of Your City Salary
Use the online calculators at www.lacers.org to determine your retirement allowance
Do you know how much your monthly retirement allowance will be when you
retire from the City? If you want to know, visit www.lacers.org and click on “Retirement Allowance Calculator.” It is easy and fast. You will be asked to
enter your:
 Retirement Type (normal or early)
Service Credit (for full-time employees, usually the number of years worked for the City)
Final Compensation based on 12 consectuive highest months
Press the "calculate" button for your estimated monthly retirement allowance.
Press reset to experiment. Try calculating what you would earn if you worked
longer, promoted or retired early.
If you want to crunch the numbers yourself, use this formula:
monthly final compensation
|
x
|
service credit
|
x
|
retirement factor
|
x
|
retirement allowance |
For an example, let’s look at Lacey. Her Final Compensation is
$3,700.00 per month; she has 32 years of Service Credit and is 55 years old.
$3,700
|
x
|
32
|
x
|
2.16%
|
=
|
$2,557.44 |
Had Lacey retired a year earlier, she would have had to take an early
retirement. The formula for an early retirement is:
monthly final compensation
|
x
|
service credit
|
x
|
retirement factor
|
x |
reduction factor*
|
= |
retirement allowance |
Based on her age, Lacey’s reduction factor is 0.8950. Her calculation now
looks like this:
$3,700
|
x
|
31
|
x
|
2.16%
|
x
|
0.8950 |
= |
$2,217.38 |
Once you've calculated your projected monthly retirement allowance, you'll
know how much you'll need to save if you'd like more money for retirement. If so, consider Deferred Compensation (www.cityofla457.com) or LACERS
Larger Annuity program.
Your money matters. Let LACERS help you make your retirement a happy and secure one.
The table of Reduction Factors may be found on our website.
|
