Pre-2015 Benefit Estimates
In considering your retirement and/or long-range future planning, it is beneficial to understand exactly how benefits are determined. For those nearing retirement, it is helpful to compare what your benefit at age 62 through age 65 will provide for you (early retirement versus the normal retirement age of 65). Any time you would like to see a retirement benefit estimate, feel free to contact Human Resources.
Figuring Your Pre-2015 Benefit
The Defined Benefit Pension Plan offers benefits to each participant based on a predetermined (defined) formula. Monthly payments are the sum of the following:
Multiply $7.50 times the number of years of credited service prior to January 1, 1981. A participant may not claim more than 20 years pre-1981 of service.
Determine the average monthly income from the five highest consecutive years of employment. This is the “final average compensation.”
Multiply the final average compensation by 1.85 percent (.0185).
Multiply the product of the above amount times the number of years credited after December 31, 1980. The minimum benefit is $17 per credited service year.