Big Pensions Make Headlines — But Most PERS Retirees Get Modest Benefits

In recent weeks, PERS has made headlines again after a retiree received a sizable pension benefit. While the idea of “PERS millionaires” certainly grabs attention, these cases have become increasingly rare and will continue to fade due to legislative reforms.

Although some retirees do receive substantial benefits, they are exceptions rather than the norm. One major reason is Senate Bill 1049, passed in 2019, which capped the final salary that can be used to calculate pension benefits at $195,000 (adjusted annually for inflation).

Additionally, the Money Match system — once responsible for some of the most generous payouts — is largely a thing of the past. Today, most retirements are calculated under the Full Formula method, which ties benefits more closely to years of service and capped final average salary.

According to the latest PERS by the Numbers report, retirees receiving more than $10,000 per month make up less than 2% of all PERS beneficiaries. Meanwhile, 75% of retirees receive less than $4,500 per month, and the average annual benefit is under $35,000.