To get even more specific, if you're on the general formula under the traditional plan, which I'd guess most current retirees are, it's 2.2% of your final average earnings (the average of your four highest consecutive years' salaries) per service year. So to get the maximum 80%, you have to work a little over 36 years (80% / 2.2% ~ 36).
You can't really include the savings on taxes and retirement contributions. Granted, those may increase your net income over what it would be if you were still paying them, but they do NOT increase your gross pension.
So, if you start at the maximum 80% pension and add 3% annually...
80% + 3% + 3% + 3% + 3% + 3% + 3% + 3% = 101%
IOW, it will take 7 years for your pension to equal your salary at retirement. That ignores the compounding effect but it's still pretty close. Obviously, it will take longer if you start at less than 80% pension. If you start working right out of high school, you can get your 36 years in by the time you're 55. But I suspect a lot of folks start later and get less service time. This also ignores that you hopefully would have gotten salary increases during those 7 years had you continued working. Looking at it that way, your pension may exceed what your salary was when you retired but it may NEVER exceed what it would have been had you not.
So I say again, your pension MAY exceed your salary IF you live long enough.
