Understanding Public Pensions in the USA
Defined benefit (DB) plans like TRS, CalSTRS, NYSTRS, and FERS guarantee a lifetime monthly pension based on a formula (years × multiplier × salary). The employer bears the investment risk.
Defined contribution (DC) plans like 401(k), 403(b), and TSP are individual investment accounts. The employee bears all investment risk, but portability is higher and the account can be inherited.
Many public employees have both: a DB pension plus a supplemental DC account (e.g., FERS + TSP, or TRS + 403(b)).
Financial planners typically recommend replacing 70–85% of pre-retirement income to maintain the same standard of living. Public pensions often provide 50–75% replacement for long-career employees.
The gap is usually filled by Social Security (for those eligible) and personal savings (403(b), 401(k), IRA, TSP). Teachers in some states (like Texas, Ohio, Louisiana) do not participate in Social Security for their teaching jobs and must save more aggressively.
Use the calculators above to estimate each leg of your three-legged retirement stool.
If you worked in a job where you did not pay Social Security taxes (e.g., teaching in Texas TRS, Ohio STRS, or Louisiana TRSL), and you also qualify for Social Security from another job:
Windfall Elimination Provision (WEP) can reduce your own Social Security benefit by up to ~$558/month (2025).
Government Pension Offset (GPO) can reduce spousal/survivor Social Security benefits by 2/3 of your public pension amount.
Note: H.R. 82 (Social Security Fairness Act) repealed WEP and GPO in January 2025, but implementation is ongoing. Check with SSA for current status.
Each of the 50 states runs its own teacher and public employee retirement systems. Formulas, multipliers, contribution rates, and COLA provisions vary widely:
- Highest multipliers: Massachusetts (MSERS 2.5%), Pennsylvania (PSERS 2.5% Class T-E)
- Lowest multipliers: Florida FRS (1.6%), Tennessee (1.5%), Mississippi PERS (1.55%)
- Best COLAs: CalPERS (up to 2%), Maine PERS (CPI-based)
- No COLAs: Texas TRS, NYSTRS, Florida FRS (post-2011), Ohio STRS — all ad-hoc or none
- Non-Social Security states (for teachers): TX, OH, LA, MA, IL (Chicago), NV, AK, ME, CO, KY, CA (some districts)
This calculator now includes 8 pension systems covering teachers and federal employees across CA, NY, PA, OH, MA, FL, TX, and the federal government — plus Social Security, 403(b)/401(k) savings, a side-by-side comparison tool, and a combined retirement income aggregator. More state systems (Georgia TRS, Illinois TRS, Kentucky KERS, North Carolina TSERS) will be added in future updates.
This website provides estimates only for educational and planning purposes. Calculations use publicly available 2025 plan documents, simplified formulas, and current-year parameters. Actual benefits may differ due to:
- Tier-specific rules and legacy plan provisions
- Purchase of service credit, military service, or out-of-state reciprocity
- Survivor and joint-and-survivor annuity options
- Salary caps, contribution limits, and tax treatment
- Future legislative changes to plan formulas
- Individual circumstances like disability retirement or early separation
Always request an official benefit estimate from your retirement system before making career or financial decisions. Consult a fee-only financial advisor for personalized advice.