Calculate when you reach the Rule of 80 for retirement (age plus years of service) and the approximate date, from age and service or birth and hire dates.
Rule Of 80 Formula
The following formula is used to calculate the Rule of 80.
Formula source: Eligibility and Calculations, Public School Retirement System of Missouri
Variables:
- R80 is the age-plus-service points total
- A is the age of the employee (years)
- YS is the pension plan’s credited service (years)
To calculate the points total, add age to the pension plan’s credited service. A total of 80 or more meets the points condition for a Rule of 80 plan. It does not by itself establish retirement eligibility; minimum age, service, membership and other plan requirements may also apply.
What is a Rule Of 80?
The Rule of 80 is an age-plus-service condition used by some pension plans. For example, age 55 plus 25 years of credited service totals 80 points. Actual eligibility depends on the plan, which may require a minimum age, minimum service or a particular membership tier. This calculator assumes continuous service earns one service year per year. Its date mode estimates age and service with a 365.2425-day year, so it cannot establish an exact retirement date or actual service credit. Confirm your retirement date with the retirement system.
How to Calculate Rule Of 80?
The following steps outline how to calculate the Rule of 80.
- First, determine age (A) in years as of the chosen date.
- Next, determine credited service (YS) in years as of the same date.
- Next, gather the formula from above = R80 = A + YS.
- Finally, calculate the Rule of 80.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
age of the employee (A) = 45
credited service (YS) = 20 years. The total is 45 + 20 = 65 points. Under the continuous-service model, reaching 80 takes (80 − 65) ÷ 2 = 7.5 years if no minimum age sets a longer wait.
