Definitions for "Benefit formula"
The formula used to calculate and determine the benefits payable to an insured or beneficiary covered by a pension plan.
Retirement benefits are based on the following formula set by Kansas law. Member's final average salary x percentage x years of service = annual benefit at normal retirement age.
Provision in a pension plan for calculating a member's defined benefit according to years of service and earnings, or years of service and a fixed dollar amount, etc.