Are you nearing retirement or just curious about how much you might receive when it comes time to retire?
We have created this tool to help you estimate what your retirement income might be from the Defined Benefit plan based on a life only benefit. If you would like to know more specific information, feel free to contact our office for a full retirement estimate that will provide the five benefit amounts that are options available to you and your beneficiary at retirement.
In order to use this calculator, you will need to know your years of service and your compensation. Based on when you enrolled in the plan, and what benefit formula applies to you, the benefit will apply as follows:
Prior to January 1, 2015: Compensation is figured by using the average of your highest five consecutive years of salary. The calculation will assume your retirement at age 65; however, if you are fully vested, you can retire as early as age 60 with a reduced benefit. If you enter an age other than 65, the calculation will show you the benefit at both the age you selected and the benefit available if you wait until the normal retirement of age 65.
The formula for this is 1.85% x the consecutive highest five years of average pay x service years.
Effective January 1, 2015: The formula for calculating retirement benefits was changed for those under the age of 60 or those under the age of 50 with fewer than 15 years of service. Compensation is figured by using the average earnings for each year of an individual’s career. If, on 1/1/15 you were 60 or older, or 50 or older, with at least 15 years of service, you are grandfathered and the calculator below will give you a good estimate of expected benefits. In addition, the normal retirement age for those not grandfathered was changed to age 67.
The formula for this is 1.50% x career annual average pay x service years.
Effective January 1, 2018: The formula for calculating retirement benefits was changed for those who were previously grandfathered. Compensation is figured by using the average earnings for each year of an individual’s career. In addition, the normal retirement age for those who were previously grandfathered will be age 67 in 2021.
The formula for all participants is 1.5% x career annual average pay x service years.
NOTE: The total of the final accrued benefit earned will include all prior accrued benefits earned during the above periods. Any accrued benefits earned as of 12/01/2014 and 12/01/2017 will be added to any new accrued benefit under the new formula.
For more information, full estimates, or any questions, please contact our Human Resources office at 317-244-3660 or toll free 800-342-5531.
You can email the HR department at email@example.com, or write the Human Resources at:
Free Methodist Church USA
PO Box 51710
Indianapolis, IN 46251