A member’s tier determines their “Formula Annuity” calculation.

• Tier 1 members: The annuity is determined by multiplying the average of the four highest consecutive annual salaries within the last ten years of service (final average salary) by 2.5% for each year of completed service or fraction thereof. The annuity is capped at 75% of the officer’s final average salary .
  
• Tier 2 members: The annuity is determined by multiplying the average of the eight highest consecutive annual salaries within the last ten years of service (final average salary) by 2.5% for each year of completed service. The annuity is capped at 75% of the officer’s final average salary.