Use the tabs below to add your age and years of service (to check your “Rule of 88” points), run an eligibility check for common point rules, or estimate a pension using a plan benefit multiplier.
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Rule Of 88 Formula
The following formula is used to check eligibility under a “Rule of 88” retirement rule (points system).
\begin{aligned}
P &= \text{Age} + S \\
\text{Qualified if } P &\ge 88
\end{aligned}Variables:
- P is your points total (Age + Years of Service)
- Age is your age in years
- S is your credited years of service
To use the Rule of 88, add your age (in years) and your years of service. If the sum is 88 or more, you meet the points requirement. Some retirement plans also include additional requirements (such as a minimum age), and pension benefit amounts are calculated using plan-specific formulas (often involving an accrual rate and final/average pay).
What is a Rule Of 88?
The Rule of 88 is a retirement eligibility guideline used by some pension plans. Under this type of “points” rule, you may be eligible to retire once your age plus your years of service equals (or exceeds) 88, subject to any additional plan rules (for example, a minimum retirement age). For example, if an employee is 60 years old and has 28 years of service, their points total is 88 and they meet the Rule of 88 points requirement.
How to Calculate Rule Of 88?
The following steps outline how to calculate the Rule of 88:
- First, determine your current age in years.
- Next, determine your total credited years of service (S).
- Next, use the formula from above: P = Age + S.
- Finally, compare your points total (P) to 88 (and check any additional plan requirements, such as a minimum age).
- 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 (then add Age + S and compare to 88).
age (years) = 60
total years of service (S) = 28 (so P = 60 + 28 = 88, which meets the Rule of 88 points requirement)
