Calculating Retirement Benefits

Benefits are based on three components - your Final Average Salary (FAS), your years of both earned and allowed service credits, and the 2.35% factor.

                                                 FAS  x  service credit  x  .0235  =  gross annual benefit

Your final average salary is the higher of:

1.   Your average annual earnings for the last 20 calendar quarters (60  months) prior to retirement, or

2.   Your highest average annual earnings for any 20 consecutive calendar quarters.

 

As part of the FAS calculation, your average annual earnings are based on quarterly earnings but will be annualized by fiscal year. The ERB Benefits Calculator will give you an unofficial estimate of  your annual and monthly retirement benefits. You may also log into your ERB account and use the Benefit Estimator.

 

For an official estimate, we recommend that you contact ERB one year prior to your expected retirement date to make sure that your service credit information and salary history are accurate.

 

Remember, the age at which you retire may affect the benefits you will receive. See "Retirement Eligibility: Age and Benefits" from the member handbook.

 

For more information please see the ERB Member Handbook or email ERB-memberhelp@state.nm.us.