1. What is the Connecticut Tier 3 Pension?

The Connecticut State Employees Retirement System (SERS) Tier 3 pension plan provides retirement benefits for state employees hired after specific dates. This calculator estimates the basic annual retirement benefit based on the Tier 3 formula.

2. How Does the Calculator Work?

The calculator uses the Connecticut Tier 3 pension formula:

Where:

• \( AS \) — Average Salary (highest 3 consecutive years)
• \( BP \) — Year's Breakpoint (Social Security wage base)
• \( CS \) — Years of Credited Service
• \( CS_{\leq35} \) — Credited service up to 35 years

Explanation: The formula provides different benefit rates for service up to 35 years and additional service beyond 35 years.

3. Understanding the Formula Components

Average Salary (AS): Typically the average of your highest 3 consecutive years of earnings.
Year's Breakpoint (BP): Usually matches the Social Security wage base for the year.
Credited Service (CS): Total years of eligible service credit in the system.

4. Using the Calculator

Tips: Enter your average salary in USD, the current year's breakpoint in USD, and your total years of credited service. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for Tier 3 benefits?
A: Generally, state employees hired after specific dates determined by the Connecticut State Employees Retirement System.

Q2: What is the maximum service credit?
A: While there's no strict maximum, benefits are calculated differently for service beyond 35 years.

Q3: How is average salary calculated?
A: Typically the average of your highest 3 consecutive years of earnings before retirement.

Q4: Are there early retirement reductions?
A: Yes, early retirement before normal retirement age may result in benefit reductions.

Q5: Is this calculator official?
A: This is an estimation tool. For exact benefits, consult with the Connecticut State Retirement Services.