1. What is the MERS CT Retirement System?

The Connecticut Municipal Employees Retirement System (MERS CT) is a retirement plan for municipal employees in Connecticut. It provides defined benefit pensions based on years of service and final average salary.

2. How Does the Pension Calculation Work?

The calculator uses the standard MERS CT pension formula:

Where:

• \( 0.02 \) — 2% multiplier per year of service
• \( YS \) — Years of service
• \( FAS \) — Final average salary (typically highest 3-5 years)

Explanation: The formula calculates an annual pension benefit equal to 2% of final average salary for each year of service. For example, 30 years of service would yield 60% of final average salary.

3. Importance of Pension Planning

Details: Understanding your potential pension benefits is crucial for retirement planning. It helps you determine when you can afford to retire and what additional savings you may need.

4. Using the Calculator

Tips: Enter your total years of service and your final average salary (usually the average of your highest 3-5 years of earnings). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is considered "final average salary"?
A: Typically, FAS is the average of your highest consecutive 3-5 years of earnings, depending on your specific MERS CT plan provisions.

Q2: Are there maximum benefit limits?
A: Yes, most pension plans have maximum benefit limits, often around 75-80% of final average salary regardless of years served.

Q3: How does early retirement affect benefits?
A: Early retirement usually results in reduced benefits. Reduction factors vary by plan and age at retirement.

Q4: What about cost-of-living adjustments (COLA)?
A: Many MERS CT plans provide COLA increases to help pensions keep pace with inflation. Check your specific plan details.

Q5: Can I purchase additional service credit?
A: Some plans allow purchasing additional service credit for previous employment or military service, which can increase your pension.