US law enforcement defined benefit pension mechanics
State and municipal police pensions typically calculate retirement pay using a formula: Years of Service × Multiplier (typically 2.5% to 3.0%) × Final Average Salary (High-3 or High-5).
Officers reaching full service (such as "20-and-out" or "25-and-out") often earn 50% to 75% of their final average compensation for life.
Worked example: Police retirement formula
An officer with a High-3 average salary of $80,000 retiring after 25 years with a 2.5% multiplier receives an annual pension of $50,000 (25 × 2.5% = 62.5% of $80,000), paying $4,167 per month.
Inputs for the us police pension calculator
High-3 Salary & Multiplier
Enter final average compensation and scheme benefit percentage multiplier.
CALCULATOR QUESTIONS
US police pension calculator questions
What is a Deferred Retirement Option Plan (DROP)?
A DROP allows an officer who reaches retirement eligibility to continue working while their monthly pension payments accumulate in an interest-bearing account, paid as a lump sum upon actual separation.