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Guide To Calculating Pension Benefits

There are three ways to figure out your pension benefit, depending on your start date with the City.

(1) Members hired prior to 1975
(2) Members hired 1975-1987
(3) Members hired 1988 & later

Note: All calculations are based on the requirements of age 60 with twenty years credited service with the City. You can, however, retire at age 50 with 8 years credited service, but there is a reduction in your pension.  To calculate this  reduction, see the Penalty Box at the bottom of this page.  For any questions about calculating your pension call the Pension Office at (412) 255-2655.

(1) Members hired prior to 1975 - Regular Pension (Age 60 with 20 years credited service)

Add your highest 36 months' salaries over the past 60 months. Use budgeted salaries and acting time only. Do not include overtime. Divide by 36 to calculate your average monthly salary. Subtract $650.00. Multiply by 30%. Add answer to $357.50. Increments are earned for each year of service over 20. Increments are 1% of the average monthly salary and cannot exceed $100.00. Add increments if applicable. The final answer is your monthly pension benefit.  The Social Security offset at age 65 does not apply to members of this pension group.

Here is the calculation as an equation.
(
Sum of highest 36 monthly salaries in last 60 months)  / 36 - 650 x . 3 + 357. 50 = pension without increments. Example:
Let's say the sum of your highest 36 month salaries is 127,000.  Divide this sum by 36 to make 3,527.78. Subtract $650.00.  Then multiply this number by .3 to make 1,058.33.  Add  357.50 to this total to make 1, 415.83, which is your total monthly pension without increments. If you worked more than twenty years with the City, you are eligible for increments.  Increments are 1% of the average monthly and cannot exceed $100.00. Example:
Let's say your average monthly salary for your highest-paid 36 months is 3,500.  If your service with the City is 22 years,  making you eligible for increments, multiply 3,500 by .02 to make 70. 

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

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(2) Members hired 1975-1987 - Regular Pension (Age 60 with 20 years credited service)*

Add your highest 36 months' salaries over the past 60 months. Use budgeted salaries and acting time only. Do not include overtime. Divide by 36 to calculate your average monthly salary. Multiply by 50%. The final answer is your monthly pension benefit before the Social Security offset at age 65.

Here is the calculation as an equation.
(
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 information about the Social Security offset at  65, see our
Retirement Benefits section.

Example:
Let's say the sum of your highest 36 month salaries is 127,000.  Divide this sum by 36 to make 3,527.78. Multiply this by .5 to make 1,763.89, which is your monthly pension benefit before the social security offset at age 65.  See
Retirement Benefits.

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

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

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

(Sum of highest 48 months' salaries) / 48 x . 50 = 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.

Example:
Let's say the sum of your highest 48 month salaries is 127,000.   Divide this sum by 48 to make 2,645.83. Multiply this by .5 to make 1,322.91, which is your monthly pension benefit before the Social Security offset at age 65. See Retirement Benefits.

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

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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: Apply the age penalty to the excess of $650.00 multiplied by 30%. Add answer to $357.50. 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.

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 Pension Office
919 City - County Building
414 Grant Street

Pittsburgh, PA 15219

Telephone:  (412) 255-2655