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Q.
How are benefits calculated?
A. The
amount of your Normal Retirement Benefit is
based on the following formula:
5.2% of all contributions accrued
before June 1, 2001; PLUS
4.5% of all contributions accrued
on and after June 1, 2001 through May 31, 2003;
PLUS
3.5% of all contributions accrued
on and after June 1, 2003 through December 31,
2004; PLUS
For the 5 month period beginning
January 1, 2005 and ending May 31, 2005, $12.50,
provided you worked 500 or more hours during
this period; if you worked at least 125 hours
but less than 500 hours, you will accrue a
benefit equal to your hours divided by 500 and
multiplied by $12.50; PLUS
For hours worked on and after
June 1, 2005, $30.00 per Plan Year provided you
work 1,200 or more hours during the Plan Year;
if you work at least 300 hours but less than
1,200 hours, you will accrue a benefit equal to
your hours divided by 1,200 and multiplied by
$30.00.
Following is an example of
how a Normal Retirement Benefit might be
calculated for retirement on May 31, 2009.
(This calculation is based on the assumptions
the participant worked 500 hours between 1/1/05
and 5/31/05 and at least 1,200 hours per Plan
Year for 2006, 2007, 2008 and 2009)
Dates of
Employer Benefit
Covered
Service Contributions
Multiplier
Monthly Pension
6/1/1962 –
5/31/2001 $30,000
x 5.2%
= $ 1,560.00 (each month for life)
6/1/2001 –
5/31/2003 $
4,000 x
4.5% =
180.00 (each month for life)
6/1/2003 –
12/31/2004 $ 3,000
x 3.5%
= 105.00 (each month for
life)
1/1/2005 –
5/31/2005
n/a
$12.50 =
12.50 (each month for life)
6/1/2005 –
5/31/2009 n/a
$30.00 x 4 yrs
= 120.00 (each month for
life)
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