Iowa IPERS Retirement Calculator
Estimate your IPERS benefit as a Regular member. Enter your service, how much of it came before July 2012, your average salary and the age you plan to leave, and see your monthly benefit and any early retirement reduction.
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How IPERS figures your benefit
Three pieces: your average salary, a multiplier based on your years of service, and a reduction if you start before normal retirement age.
Annual Benefit = Average Salary x Multiplier - Early Reduction
The multiplier grows 2 percentage points a year for your first 30 years, then 1 point a year for years 31 through 35. It tops out at 65% of average salary at 35 years. So 20 years is 40%, 30 years is 60% and 33 years is 63%.
Average salary is your five highest years of covered wages, and they don't have to be consecutive. If you were vested on June 30, 2012, it can't be less than your highest three-year average as of that date. IPERS also tests for wage spiking and caps a final average that jumps too far above your other years.
Normal retirement age
Whichever comes first: age 65, age 62 with 20 years of service, or the Rule of 88, where your age plus service reaches 88 and you're at least 55. At 58 with 30 years you're there. At 54 you aren't, no matter how much service you have.
You need 7 years of service to vest (4 if you vested before July 2012), or you vest by working in covered employment until 65. Once vested you can start a benefit any time from 55, with a reduction if you're short of normal retirement age.
The early retirement reduction
This is where most people get it wrong. The 2012 reform split the reduction by when service was earned.
- Service from July 1, 2012 on: 0.5% per month (6% a year) for every month you start before 65. Your 62/20 or Rule of 88 date doesn't help this part.
- Service through June 30, 2012, for members vested by then: 0.25% per month (3% a year) before your nearest normal retirement date.
- Members who weren't vested on June 30, 2012: the whole benefit uses the 0.5% per month rate before 65.
Someone hired after 2012 who leaves at 60 with 20 years takes a 30% cut, because 60 is five years short of 65. A member with the same 20 years, half of it before July 2012, takes about 18%: 6% on the older half (two years short of 62/20) and 30% on the newer half.
COLA and dividends
IPERS has no automatic COLA for Regular members. Members who retired on or before June 30, 1990 get an annual November Dividend. The Favorable Experience Dividend covered only members who retired between July 1, 1990 and February 28, 2013, and its account has been empty since the last payment in January 2014. If you retire now, plan on a flat benefit.
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Frequently asked questions
How is an IPERS benefit calculated?
Average salary x multiplier, minus any early retirement reduction. The multiplier is 2% per year for the first 30 years and 1% per year for years 31-35, so the maximum is 65% at 35 years. Average salary is your highest five years of covered wages.
When can I retire from IPERS without a reduction?
At normal retirement age, which is the earliest of age 65, age 62 with 20 years of service, or the Rule of 88 (age plus service of 88 or more, minimum age 55).
How much is the IPERS early retirement reduction?
For service earned from July 1, 2012 on, 0.5% per month (6% a year) before age 65. For service through June 30, 2012, members who were vested by then get 0.25% per month (3% a year) before their nearest normal retirement date on that share. A post-2012 hire leaving at 60 takes a 30% cut.
How long does it take to vest in IPERS?
7 years of service, or reaching 65 while in covered employment. Members vested before July 1, 2012 under the old 4-year rule stay vested.
Does IPERS have a COLA?
No automatic one for Regular members. Only pre-July 1990 retirees get the November Dividend. The Favorable Experience Dividend applied only to members who retired before March 1, 2013, and its account has been empty since January 2014.
Can I start my IPERS benefit before 55?
No. Regular members can start at 55 at the earliest unless they retire on disability and receive Social Security or Railroad Retirement disability benefits.