Does PERA Use Calendar Years to Calculate High Three?
Calculate your Highest Average Salary (HAS) based on consecutive months, not just calendar years.
$65,666.67
$197,000.00
$5,472.22
36 Consecutive Months
Visualizing Your High Three Period
Blue bars represent the High Three period used for your HAS.
What is the PERA Highest Average Salary (HAS)?
When planning for retirement, one of the most common questions public employees ask is, “does pera use calendar years to calculate high three?” Understanding this calculation is vital because your PERA pension is typically a percentage of your Highest Average Salary (HAS). The HAS represents the average of your highest earnings over a specific duration of service credit.
Most PERA members should use this calculator to estimate their base benefit. A common misconception is that PERA only looks at January through December. In reality, PERA looks for the highest 36 (or 60) consecutive months of service credit, regardless of when the calendar year begins or ends. This means your “High Three” could span from June of one year to May three years later.
PERA High Three Formula and Mathematical Explanation
The mathematical approach to finding your HAS involves identifying the peak window of earnings. While does pera use calendar years to calculate high three is the question, the formula is strictly based on consecutive months of service credit.
The formula is as follows:
HAS = (Sum of 36 Highest Consecutive Months of Salary) / 36
| Variable | Meaning | Unit | Typical Range |
|---|---|---|---|
| HAS | Highest Average Salary | Currency ($) | $30k – $150k+ |
| Service Credit | Months of active PERA contribution | Months | 36 or 60 months |
| Salary Limit | Annual percentage increase cap | Percentage (%) | 8% – 15% |
Practical Examples of PERA High Three
Example 1: The Linear Climber
Suppose a teacher earns $60,000, $62,000, and $64,000 in their final three years. Since these are their highest years, PERA sums these ($186,000) and divides by 3 to get an HAS of $62,000. It doesn’t matter if they retire in December or June; PERA simply counts back 36 months.
Example 2: The Mid-Year Promotion
An employee receives a massive promotion in July. Their “High Three” will likely start from that July and go forward for 36 months. This confirms that does pera use calendar years to calculate high three is answered with a “No”—the system is flexible to capture your highest earning window wherever it falls.
How to Use This PERA Calculation Tool
- Enter your gross annual salary for the last 5 years in the input fields.
- The tool automatically identifies the highest 3 consecutive years.
- Review the Estimated Highest Average Salary (HAS) highlighted at the top.
- Look at the Average Monthly Salary to understand your monthly pension base.
- Use the chart to see which years contributed most to your retirement calculation.
Key Factors That Affect Your PERA Results
- Salary Caps: PERA often limits how much your salary can increase year-over-year (e.g., 8% or 15%) for HAS purposes to prevent “pension spiking.”
- Overtime and Bonuses: Depending on your specific PERA division, overtime may or may not be included in the “does pera use calendar years to calculate high three” math.
- Service Credit: You must have earned full service credit during those months for the salary to count fully.
- Unused Sick/Vacation: Some older members may have these payouts included in their HAS, though many newer tiers exclude them.
- Consecutive Months: If you take a leave of absence, the 36 months must still be “consecutive” in terms of service credit earned.
- Inflation and COLA: While HAS is based on historical dollars, your eventual benefit may be adjusted by a cost-of-living adjustment.
Frequently Asked Questions (FAQ)
Does PERA use calendar years to calculate high three for all members?
No, PERA typically uses the highest 36 or 60 consecutive months of service credit, regardless of the calendar year.
What happens if my highest years were not my last years?
PERA will search your entire salary history to find the highest consecutive months, even if they occurred mid-career.
Are bonuses included in the High Three?
This depends on your employer and PERA tier. Generally, standard performance bonuses are included, but one-time payouts might be excluded.
How does a salary cap affect my HAS?
If your salary jumps 20% in one year, but the cap is 15%, PERA will only use the 15% increase to calculate your average.
Can I use my 401k balance to increase my HAS?
No, HAS is strictly based on your defined benefit salary. However, you can compare your pension vs 401k to see which provides more income.
Does retiring in the middle of the month hurt my High Three?
It may result in a partial month of service credit, but PERA’s logic looks at the total credit earned across the 36-month window.
What if I have two PERA jobs at once?
Salaries from multiple PERA-covered employers are usually combined for the HAS calculation during the same period.
Where can I find my official salary history?
You can view your annual member statement on the official PERA website to get the exact numbers for this calculator.
Related Tools and Internal Resources
- Retirement Age Calculator – Determine the best date to stop working based on service credit.
- Pension vs 401k Comparison – See how your PERA HAS benefit stacks up against private sector plans.
- Social Security Offset Tool – Understand how your PERA pension might reduce your Social Security benefits.
- COLA Impact Estimator – Calculate how inflation will affect your PERA HAS over 20 years.
- Early Retirement Reduction Table – See the penalties for retiring before your full service age.
- PERA Beneficiary Options – Explore how choosing a survivor benefit changes your monthly payout.