Alaska PERS Retirement Calculator
Estimate your Alaska PERS defined benefit pension for Tiers I, II and III. Pick your tier, enter your service and high-average salary, and see your monthly benefit, any early retirement reduction and the Alaska COLA.
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Which tier you're in
Your tier depends on when you first entered PERS. Tier I: before July 1, 1986. Tier II: July 1, 1986 through June 30, 1996. Tier III: July 1, 1996 through June 30, 2006. Anyone who entered after June 30, 2006 is in the Defined Contribution Retirement plan, often called Tier IV, which has no formula pension at all.
The formula
Monthly Benefit = Average Monthly Compensation x (2% x years 1-10 + 2.25% x years 11-20 + 2.5% x years over 20)
Average monthly compensation comes from your three highest consecutive payroll years in Tiers I and II, and five in Tier III. In Tier I, all service earned before July 1, 1986 counts at 2%. The DRB handbook's example: AMC of $2,500 and 30 years after June 1986 gives $500 + $562.50 + $625 = $1,687.50 a month. If 17 of those years came before July 1986, it's $1,643.75.
When you can retire
You vest after 5 years. Normal retirement age is 55 in Tier I and 60 in Tiers II and III. With 30 years of membership service you can retire at any age without a reduction.
Early retirement opens five years before normal age: 50 in Tier I, 55 in Tiers II and III. You only need to be vested, not 20 years in. The cut is 0.5% for each month before normal retirement age, 6% a year, so a Tier III member starting at 55 loses 30% for life.
If you leave before early retirement age, your vested benefit waits for you. Once you've left PERS and reached normal age, waiting longer doesn't raise it.
Alaska COLA and PRPA
These are two separate increases. The Alaska Cost-of-Living Allowance adds the greater of $50 or 10% of your base benefit each month, with no dollar cap, as long as you're domiciled in Alaska. Tier I retirees get it at any age. Tier II and III retirees get it from 65, or at any age on disability.
The Post Retirement Pension Adjustment raises the base benefit every July when Anchorage prices rise: 75% of the CPI increase, up to 9%, if you're 65 or older, or 50% of it, up to 6%, if you're 60 or older or have been receiving benefits for 5 years.
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Frequently asked questions
How is an Alaska PERS pension calculated?
Average monthly compensation times 2% for each of your first 10 years, 2.25% for years 11 through 20, and 2.5% for each year after 20. With a $2,500 AMC and 30 years, that's $1,687.50 a month.
When can Tier II and Tier III members retire?
Unreduced at 60 once vested (5 years), or at any age with 30 years of membership service. Early retirement starts at 55 once vested, reduced 0.5% for each month under 60.
When can Tier I members retire?
Unreduced at 55 once vested, or at any age with 30 years. Early retirement starts at 50, reduced 0.5% a month under 55.
How much is the Alaska PERS COLA?
The greater of $50 or 10% of your base benefit, with no cap, for retirees who live in Alaska. Tier II and III members get it from age 65. Separately, the PRPA raises benefits each July by 75% of Anchorage CPI (max 9%) at 65+, or 50% (max 6%) at 60+ or after 5 years of benefits.
Is there a Tier IV pension?
No. Members who entered PERS after June 30, 2006 are in the Defined Contribution Retirement plan. They contribute 8%, employers add 5%, and the benefit is the account balance.
How long does it take to vest in Alaska PERS?
5 years of service for the Tier I-III pension. Tier III members need 10 years for system-paid retiree medical coverage.