311

CALCULATE YOUR PENSION

The Big Two

There are two ways to figure out your pension benefits. These depend on your start date with the City of Pittsburgh.

  1. Members Hired 1975 to 1987
  2. Members Hired 1988 and Beyond

Note: All calculations are based on the requirements of age 60 with 20 years credited service with the City. You can, however, retire at age 50 with 8 years credited service, with a reduction in your pension. To calculate this reduction, see the Penalty Box below.

Penalty Box

You can retire with a minimum of age 50 with 8 years credited service.

To calculate the reduction for age reduce the benefit 1/2 percent for each month you are short attainment of age 60.

  • For example, 6% reduction per year.

To calculate the reduction for service pro-rate the number of months' credited service over 240 months.

  • For example, for 10 years credited service, the benefit would be reduced one half.

PENALTY CALCULATION FOR AGE FOR MEMBERS HIRED PRIOR TO 1975 WITH 25 YEARS SERVICE:

a. Apply the age penalty to the excess of $650.00 multiplied by 30%.
b. Add answer to $357.50.
c. Add increments.

This results in a reduced penalty for members in this category.

For any questions about calculating your pension call the Pension Office at 412-255-2655.

1) Members hired 1975 - 1987 - Regular Pension (Age 60 with 20 years credited service), enter the sum of the highest 36 months, over last 60 months.

2) Members hired 1988 & later - Regular Pension (Age 60 with 20 years credited service), enter the sum of the highest 48 months.

1975 - 1987
1988 - Later

Hired Prior to 1975

1. Add your highest 36 months' salaries over the past 60 months.
* Use budgeted salaries and acting time only. Do not include overtime.

  • a. Divide by 36 to calculate your average monthly salary.
  • b. Subtract $650.00.
  • c. Multiply by 30%.
  • d. Add answer to $357.50.
  • e. Add increments if applicable.

* Increments are earned for each year of service over 20 years.
* Increments are 1% of the average monthly salary and cannot exceed $100.00.

The final answer is your monthly pension benefit. The Social Security offset at age 65 does not apply to members of this pension group.

Example Calculation

a. Let's say the sum of your highest 36 month salaries is $127,000.
b. Divide this sum by 36 months to make $3,527.78.
c. Subtract $650.00.
d. Then multiply this number by .3 to make $1,058.33.
e. Add 357.50 to this total to make $1,415.83.

* This is your total monthly pension without increments.

2. If you worked more than twenty years with the City, you are eligible for increments.

a. Let's say your average monthly salary for your highest-paid 36 months is $3,500.
b. If your service with the City is 22 years, making you eligible for increments, multiply $3,500 by .02 (1% of average monthly) to make $70 in incremements.

Example Calculation

(Sum of highest 36 monthly salaries in last 60 months) / 36 - 650 x . 3 + 357. 50 = pension without increments.

For any questions about calculating your pension call the Pension Office at 412-255-2655.

Hired 1975-1987

a. Add your highest 36 months of salaries over the past 60 months.
b. Use budgeted salaries and acting time only. Do not include overtime.
c. Divide by 36 to calculate your average monthly salary.
d. Multiply by 50%.

* The final answer is your monthly pension benefit before the Social Security offset at age 65.

Example:

a. Let's say the sum of your highest 36 month salaries is $127,000.
b. Divide this sum by 36 to make $3,527.78.
c. Multiply this by .5 to make $1,763.89,

* This is your monthly pension benefit before the social security offset at age 65. For information about the Social Security offset at 65, see Retirement Benefits.

Example Calculation

(Sum of highest 36 monthly salaries in the last 60 months) / 36 x . 5 = your monthly pension benefit before the Social Security offset at age 65.

For any questions about calculating your pension call the Pension Office at 412-255-2655.

Hired 1988 or later

Members hired 1988 & later- Regular Pension (Age 60 with 20 years credited service)*

  1. Add your highest 48 months' salaries.
    • Use budgeted salaries and acting time only. Do not include overtime.
  2. Divide by 48 to calculate your average monthly salary.
  3. Multiply by 50%.
  4. The final answer is your monthly pension benefit before the Social Security offset at age 65.

Example:

  1. Let's say the sum of your highest 48 month salaries is $127,000.  
  2. Divide this sum by 48 to make $2,645.83.
  3. Multiply this by .5 to make $1,322.91.
    • This is your monthly pension benefit before the Social Security offset at age 65. 

For information about the Social Security offset at  65, see our Retirement Benefits section.

Here is the calculation as an equation:

(Sum of highest 48 months' salaries) / 48 x . 50 = your monthly pension benefit before the Social Security offset at age 65.  

For any questions about calculating your pension call the Pension Office at 412-255-2655.

Floor6!