Purchasing Service Maximizing Your IPERS Benefits

Why Service Is Important

Service is important because it helps determine the amount of your retirement benefits. You earn IPERS service credit for each quarter you work in a position that is covered by IPERS. Each quarter your employer reports the IPERS-covered wages you earn. You can earn a maximum of 4 quarters per calendar year.

IPERS calculates your benefits using a multiplier and your highest 3-year average salary. The multiplier is based on the number of years you were in IPERS-covered employment. For most IPERS members, the multiplier increases 2 percent each year, up to 30 years, and 1 percent for the next 5 years.*

Your IPERS benefit is calculated* as follows:

* For most members, your IPERS benefits will be reduced if you receive them before normal retirement age (see box on the right for information about normal retirement age). Benefits for sheriffs, deputy sheriffs, and members in other protection occupations are not reduced because of age. Benefits for these groups also are determined using a different multiplier.