CALCULATING THE RETIREMENT BENEFIT (3 OF 3)
01.Core Concepts
For 2025 PIA of $8,000 ($96,000 annualized) Tier 1 90% x $1,226 = $1,103.40 Tier 2 32% x [$7,391– $1,226] = $1,972.80 Tier 3 15% x [$8,000 – $7,391] = $91.35 PIA per month = $3,167.55 • Worker would receive PIA at FRA • An eligible beneficiary of the worker may receive a percentage of the PIA (usually 50%). 19 EARLY RETIREMENT • May begin at age 62 • Permanently reduced benefit: • 5/9 of 1% for each month of early retirement up to 36 months early, plus • 5/12 of 1% for each month of early retirement greater than 36 months up to 24 months Note: Formula for reduced benefits is different for the spouse.