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Benefit Multiplier

The benefit multiplier (also called "accrual rate") determines how quickly your pension benefit grows with each year of service. A 2% multiplier means you earn 2% of your FAS per year worked. After 30 years, that replaces 60% of your salary. Multipliers vary by sector: private corporate plans (1.0-1.7%), public general employees (1.5-2.0%), teachers (1.5-2.5%), public safety (2.0-3.0%), and federal FERS (1.0-1.1%).

Example

With a 2.5% multiplier (common for police/fire): 25 years × $95,000 × 2.5% = $59,375/year. The same service at a 1.5% multiplier (common for corporate): 25 × $95,000 × 1.5% = $35,625/year.

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Pension Benefit Estimation

A defined benefit pension pays a guaranteed monthly income for life, calculated as: Years of Service × Final Average Salary × Benefit Multiplier. A typical 2% multiplier over 30 years replaces 60% of your final salary. Only 14% of private sector workers still have access to a pension (2025), but 86% of public sector workers do.