Statement Assumptions


Back to Understanding Your ERS Annual Statement

Many assumptions go into the creation of your Personal Statement of Retirement Benefits.  Here are the main ones you need to know about. Keep in mind that the numbers shown in this statement are for illustrative purposes only and do not include any of your personal savings, other pensions you may have, or your spouse’s savings and pensions.



ERS Pension: All projected amounts assume:

  • a continuation of your current base pay, and
  • a continuation of your ERS employment without breaks in service until your assumed retirement date. 

Pension amounts shown are payable for your life only (“Max Plan”).

401(k)/457: PSR benefits are based on:

  • the current balances shown in this statement,
  • a continuation of your 401(k) and 457 contributions until your assumed retirement date,
  • your current investment fund mix, and
  • you make no withdrawals from the plans.

The estimated monthly benefit from your PSR 401(k) / 457 plans has been calculated assuming industry-accepted life expectancies and discount rates. Different assumptions will yield different results.

Your projections may not include fund balances in your Alight Financial Services Self-Directed Brokerage Account, unless you have added that information in projection with Alight Financial Advisors.

Social Security: This estimated benefit is based on your current salary from state employment, assuming you have been fully employed for your career. Earnings with other covered employment, or periods of low or no earnings, are not considered in your Social Security estimate.

Retirement Income Shortfall: To determine the amount of savings needed at retirement, a 5.0% nominal investment rate of return and a 3.5% rate of inflation were used and the length of retirement was assumed to be 20 years.

GaBreeze Website: Please note that the projections on GaBreeze are based on current, real time information, including any customizations you have made to add outside retirement assets or a different desired retirement age. Your online pension forecast will be different than this statement because it has been adjusted to account for inflation. The online forecast may be less than the actual future benefit amount, as inflation lowers the purchasing power of your future benefits. While the two projection methodologies are different, both are valuable tools for your retirement planning.

For further information on the PSR 401(k), PSR 457 plan, and Social Security forecast information displayed on this statement, log in to GaBreeze and select “Get Investment Advice” under the “Savings & Retirement” tab.