12 US States With The Highest Average Retired Police Pensions

While the civilian population wonders why pensions seem like a thing of the past, for retired police officers, a pension can still be a huge benefit to their post-career financial security. However, the value of these pensions varies dramatically across the U.S., influenced by local and state economic policies, years of work, and the power of the police union representing them. As such, according to a nationwide analysis by World Population Review, there are a number of states where police have higher-than-average pensions. Among those are Iowa, Rhode Island, Minnesota, California, Pennsylvania, New Jersey, Hawaii, Colorado, Oregon, Massachusetts, Alaska, and New York.

As per Rstreet, these substantial payouts are often the result of strategic policy choices — deferred pensions, the ability to take month-long breaks without losing their pensions — and federally legislated boosts like former President Joe Biden's Social Security Fairness Act. The Act included a special provision that would negate an old rule that offset police officer's Social Security benefits based on their pensions. As per Kiplinger, state tax policies on retirement income also directly impact police pensions since 15 states, including the aforementioned Hawaii, Alaska, Iowa, and Pennsylvania, do not tax pensions. However, where your tax dollars are concerned, it's possible that the high cost of police pensions may defer the cost of crime in America's most dangerous cities. Here is a breakdown of the highest police pensions by state.

Iowa claims a top spot for police pensions, thanks to, according to Who13 Des Moines, direct legislative action aimed at strengthening law enforcement recruitment and retention. State lawmakers advanced a bill in April 2025 to lower the retirement age for police officers, a policy designed to make the career more attractive by allowing for an earlier exit with full benefits. The new rules would require a police officer to have worked just 22 years before taking their pension after paying an additional 10% of their wages into the retirement system. Currently, as per World Population Review, a police officer in Iowa can collect their pension at a minimum age of 55 years old, with an average annual police pension of $59,175.

Along with access to your pension at 55 years old, the new bill would make retiring later a way for Iowa police to earn an even higher payout. After 30 years of service, an Iowa police officer can collect as much as 80% of their annual salary as their pension. According to the Iowa City website, the starting salary for an Iowa police officer is $65,991, with the potential to rise over the years to $98,087 per year. Assuming an officer who served 30 years was at the top rate, 80% of $98,087 per year would be around $78,470. Even better for a retired officer in Iowa, is this state offers a low cost of living that also exempts Social Security income.

According to World Population Review, the average annual police pension in Rhode Island is $59,374. According to the Rhode Island State Police, an officer retiring after 25 years of service is eligible to collect a pension equal to 50% of their highest earning years on the force. That increases by two percent for each year of service after year 25, and can rise to as high as 65% of their highest earning years with a contribution of 8.75%. The starting salary for a new officer fresh out of the academy is $81,579 as of October 2025. This can rise to a high of $110,224 after 10 years on the force, which can be deceiving to anyone assuming this is what the average police officer makes. As such, Rhode Island offers one of the nation's highest average police pensions, if you consider an annual pension at 50% of $110,224 is $55,112, and 65%, representing the maximum pension payout, is an annual pension of $71,646.

However, according to The Brown Daily Herald, thanks to the negative impact of President Donald Trump's rising tariffs on the Employees' Retirement System of Rhode Island's investments, the state's pension portfolio suffered an estimated 4.5% loss. This is the equivalent of $500 million. So while working class civilians wait to receive notice of President Trump's supposed tariff dividends, state employees in Rhode Island, including retired police officers, may suffer the negative impact of the international tariffs.

As per World Population Review, the average annual pension for a retired police officer in Minnesota is $59,380. According to the Public Employees Retirement Association (PERA), police officers contribute 11.8% of their wages to their pension fund, with the state topping up an additional 17.7%. Officers may receive 50% of their earned pension after five years on the force, going up by 10% every year to a 100% of earned pension in the 10th year. PERA multiplies each year of an officer's service by 3%, before multiplying a maximum of 99% of their monthly salary average by any amount deducted for earlier retirement. At 55 years old, an officer is eligible to collect their full pension, although you have the option to retire as young as 50 years of age for a reduced amount.

As per Saint Paul Minnesota, the starting salary for a Minnesota police officer is $88,628 per year, but as per a June 2022 report by the Minnesota Reformer, the road to a lucrative pension is paved with overtime. Thanks to staffing shortages, 72% of Minnesota police officers in 2021 earned into the six-figures, some earning over $200,000. Police pensions are based on the five highest earning years, and at 30 years, that pension is equivalent to 99% of that income. Even so, in May 2025, the Minnesota Legislature passed a bill raising the pensions of all public employees, including police officers, making Minnesota one of the best states for public pensions.

Anyone living in The Golden State already knows that the value of a $100 in California leaves a lot to be desired. For police working in the state, according to World Population Review, this discrepancy appears to be factored into their retirement with an average 2025 pension of $59,835. Of course, as has been demonstrated by the previous states, the average doesn't necessarily mean the most. California is a massive state with many police departments. With pensions being tied to salaries, you'll find a broad range of salaries with full time members of the Los Angeles Police Department (LAPD) earning $124,236 and The San Francisco Police Department (SFPD) earning up to $164,164 after seven years, for instance. Generally, you can collect your pension after just five years of service if before January 1, 2013, or be at least 52 years old. As per Cal Matters, pensions are capped at $186,000 for officers beginning their service after January 1, 2013. Meanwhile, a current bill before the California legislature proposes raising the pension cap to the federal limit of $280,000 per year.

According to Rstreet, as of May 2025, the California Public Employees Retirement System (CalPERS) only had 75% of the funds needed to cover the pensions of public employees, including police officers. Again, the impact of President Trump's tariff threats on global markets haven't helped. In 2025, CalPERS shed $15 billion over just two-days amid Trump's drastic shifts to the U.S. economy.

According to ZipRecruiter, as of December 2025, the top salary for a Pennsylvania State Police officer is $103,749 annually. As per World Population Review, the average pension for a police officer is $60,774 per year. The Pennsylvania State Employees Retirement System (SERS) notes that state police begin paying into their pensions on their first day of training at the academy. They can collect their pension after 10 years of service at 55 years old, with deductions. However, they are eligible for 50% of their highest year of earnings between 20 and 24 years of service, and up to 75% of their highest year of earnings after 25 years of service, not including their final year.

While it may be difficult to comprehend the math behind how 54% of an average salary of just over $103,000 equates to an average pension north of $60,000, according to the Reason Foundation, a bill passed in 2024 by the Pennsylvania house may offer an answer. The bill raised the pensions of public workers in the state from 15% to 24.5%, with a special provision for police and firefighters that would offer a special "as needed" top up of $74 to $300 per month. That's despite adding just under $1.2 billion in underfunded liabilities to the pension pool.

According to a May 2023 Edward J. Bloustein School of Planning and Public Policy study, the high average pensions in New Jersey extend beyond just police officers, and include the fire department and school administrators. Where the police are concerned, the lucrative pensions are driven by extravagant lump-sum retirement payouts for top ranking officers, which the study reveals cost New Jersey a staggering $76.7 million, which was split between the highest ranking 780 government employees. With salaries being used to calculate pensions, unused sick and vacation time also helped to dramatically raise an officer's final salary. As per World Population Review, the average police pension in New Jersey is $61,552.

According to NJ Spotlight News, pension fund returns on investment of 11% have also bolstered police pensions, with fund assets totaling $76.5 billion. Thanks to a plan which diverted a share of lottery revenues into the state pension fund, 2025 saw an extra $1 billion added to the fund. In addition, after a 20 year period of underfunding the pension fund, the state began contributing to the pension coffers, adding around $7 billion to the fund in 2025 — including the portion of lottery revenues — with plans to add another $7 billion in 2026. Considering New Jersey is home to one of the most expensive retirement communities in the U.S., at least retired police should be able to retire well in the state.

In Hawaii, the pension outlook for the police appears bright according to World Population Review, which notes the average police pension in 2025 is $62,991. Although police have to perform 25 years of service, or work until 65 years of age, the pay off is worth it.

As per Honolulu Civil Beat, huge spikes in overtime were single-handedly responsible for driving up costs for the county by 60%, representing a $35 million hit to taxpayers. With police pensions tied to police salaries in their last few years of service, and some officers tallying 1,000 to 2,000 overtime hours in 2024, it becomes clear why Hawaii police pensions are among the highest in the U.S. The issue is further exacerbated by the amount of police officers taking early retirement in a state where the cost of living has most people rethinking retirement, leading to issues with staffing and officer retention. With the Honolulu Police Department (HPD) paying out over $58 million in overtime in 2025 alone, it's possible for retiring police officers to earn $200,000 or more — one officer made a salary of $371,105 in their final year before retirement, and according to Hawaii News Now, stands to collect a pension worth $10,000 per month after 29 years on the force.

The state of Colorado, as per World Population Review, rewards its police officers with a pension after 25 years of service at 50 years old. That looks like an average pension of $63,198 a year. According to Indeed, as of November 2025, the average officer salary in Colorado is $83,956 per year, a salary 19% above the national average. While that's not an upper class salary in Colorado, it still impacts police pensions considerably.

In this instance however, as per the Colorado Sun, government legislation versus overtime appears to have an even greater impact on police pensions in the state. In an attempt to address recruitment, training and payroll increases for law enforcement, Proposition 130 — a bill passed into law that creates a dedicated funding stream for law enforcement members of the Colorado Public Employees' Retirement Association (PERA) — both ensures that there are enough police officers working the streets of Colorado, and that those officers can rely on their pensions in retirement. According to PERA, police officers in Colorado receive a pension worth 2.5% of their highest salaried years for each year of service up to 100%. An average pension worth $63,198 should provide a comfortable retirement for police officers in any one of Colorado's most affordable places to live.

As per World Population Review, the average pension in Oregon is $64,317. Although Indeed notes the average police officer salary in Oregon is $83,399 per year — in the capital, Portland, that average rises to $100,333 — according to Police1, high turnover has Oregon's police officers decamping for more lucrative locations like Washington and California. A May 2025 bill, under review by the state legislature, proposes that the age of retirement for police officers be lowered to 50 years old. The move is seen as a retention measure that would incentivize Oregon police officers to stick around for the entirety of their 25 years of service. While this legislation addresses lower morale, it also increases the total cost of pension systems since retired police officers may end up collecting their benefits for a potentially longer period of their lives. This move alone would incur an additional $6.3 million annual bill on the state, adding to a gaping $80 million dollar liability to Oregon's pension system.

The average annual pension in Massachusetts, according to World Population Review, is $66,214 at a minimum retirement age of 65 years old. That said, according to Police1, colossal overtime coverage has major impacts on police pension payouts in retirement, often based on salaries earned in their final years of service. In 2024, a detective earned $349,815 in overtime hours alone, contributing to a total gross salary of $584,072. Events like the Boston Marathon, construction, and the use of state police in Airport security have led to short staffing and a need for more officers to work additional hours. It turns out, at least in Massachusetts, policing is a high paying job that doesn't require a college degree if you're prepared to work some extra hours.

According to a 2024 study by the Pioneer Institute, law enforcement in Massachusetts earned the highest average pensions paid for by taxpayers in 2023, with the Department of Corrections and the State Police taking the first and second place spots respectively. The Department of Corrections cost taxpayers over $204.4 million in pensions, while the State Police cost the state $108.1 million in pension spending. Pensions related to law enforcement not only landed the State Police in the top 10 highest total pensions paid, but the top 10 for highest average pension payments for departments with more than 50 retirees.

Alaska offers some of the most generous police pensions in the nation according to World Population Review, with an average annual pension in 2025 of $66,930. The job comes with early retirement at 55 years old if you've worked the minimum required years, or full retirement at 60 years old. However, you can retire at any age with your full pension if you've put in 20 to 30 years of service.

As per a 2018 story in the Juneau Empire, prior issues with the retirement system may have led to these higher pensions. Police departments across the state were starved for new officers, and directly blamed a 2006 switch from a traditional defined-benefit pension to a 401(k)-style defined contribution plan for new hires viewed as far less attractive or secure. According to the Alaska Beacon, the Alaska House voted in May 2025 to revive a traditional pension plan for state and municipal workers in a direct response to this severe workforce shortage. Not only did the state legislature acknowledge that generous, guaranteed retirement benefits were critical for attracting police officers, but they also provide their officers with the second-highest pensions in the U.S.

While World Population Review states the average annual pension earned for police officers in New York State at $67,992, earning those officers the top spot for highest paid police pensions in 2025, according to Empire Center, the highest pension paid out in 2025 went to an officer retired in May 2021 who collected a $512,927 benefit. New York City's police, the New York Police Department (NYPD), collected an average of $103,859 benefit, with the total cost of pensions to the taxpayer totaling just under $3.6 billion for 54,571 police officers. There were 28 police officers with pensions over $300,000, 389 officers with pensions of at least $200,000, and 8,633 New York police officers with a minimum pension of $100,000. Overtime is the culprit yet again, with coverage for courtroom backlogs, events, and staffing shortages helping police log more hours — significantly raising salaries tied to pension calculations.

While retiring in this state will cost you, it appears that police in New York have less to worry about than the average New Yorker. As per the New York City Comptroller, as of August 2025, the New York City Police Pension Fund was one of five funds managed by the state. Strong returns of the combined funds contributed to just under $2.2 billion in savings for the state, which is good news for taxpayers, and better news for New York's police. It also demonstrates the value of diversification, one of several investment tactics that world's wealthiest people have in common.