6/9/06

Calculating Your Pension Under the New Contract

There have been some questions on how to calculate your pension if you have more than 27 years of service.

Step 1:
Figure out what percentage of your high four average that you will receive as a retirement income. This is done by multiplying 27 years times 1.85 and adding to it the product of 1.95 times years of service in excess of 27.

Example: A member has 32 years of service.
(1.85 x 27) + (1.95 x 5) = 49.95% + 9.75% = 59.7%

Step 2:
Calculate your high four average.
Your high four average is the sum of the four years that your compensation is the highest, from the year you started working to the year you retire.

Example:

1990--50,000
2001--60,000
2004--70,000
2005--80,000

equals 260,000

260,000 / 4 = 65,000

Step 3:
Multiply the percentage by high four average.

65,000 x .597 = $38,805/ year pension

Fraternally,

Michael Golash