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  Home > Pension Plan > Determining Pension Amount

DETERMINING YOUR PENSION AMOUNT

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Your years of Credited Service and the contribution rate paid by your employer on your behalf determine the amount of your pension.

Defined Benefit Plan

News articles often refer to defined contribution plans, defined benefit plans, 401k’s, and other retirement arrangements. The Pension Plan is a “defined benefit plan.” This type of plan pays a monthly retirement benefit based on the Plan’s defined formula that takes into account years of Credited Service and rates established by the Board of Trustees. Since there is not a separate account with a dollar balance of contributions made on your behalf, the amount of your benefit is not affected by changes in the stock market or other investments.

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Pension Rate

A pension rate is established by the Board of Trustees for every contribution rate paid by an employer on behalf of its employees:

Employer's Hourly Contribution Rate Monthly Pension Rate for
Service Earned
Prior to 2006 2006 through 2010* 2011 and After
72¢ $53.00 $35.00
67¢ $48.00 $32.00
62¢ $24.00 $16.00
57¢ $53.00 $22.00 $15.00
52¢ $48.00 $20.00 $13.00
47¢ $22.00 $18.00 $11.00
42¢ $20.00 $16.75 $9.00
37¢ $18.00 $16.50 $7.00
32¢ $16.00 $16.50 $5.00
27¢ $14.00 $8.00 $4.00
22¢ $12.00 $6.00 $3.00
17¢ $10.00 $6.00 $2.00
16¢ $9.00
15¢ $8.00
14¢ $7.50
13¢ $7.00
12¢ $6.50
11¢ $6.30
10¢ $6.30
8¢ or less $5.80

*Note that during the period from 2006 to 2008, you may be entitled to a pension calculated based on an Employer Hourly Contribution Rate that is higher than the 57¢, 62¢ or 67¢ rate paid by your employer. This will occur if your employer and the union had a collective bargaining agreement that expired some time during this period. Contact the Pension Department at the Benefits Fund Office for more information.

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Determining Your Normal Pension Amount

Your Normal Pension is the pension payable to you at your Normal Retirement Age with no reductions for early retirement or for optional forms of payment.

The best way to get an accurate estimate of your pension is to call or e-mail the Pension Department at the Benefits Fund Office. A Pension Status Report can be prepared very quickly with your full record of accrued service and an estimate of the benefit you have currently earned.

If you wish to calculate your own estimate or you just want to more fully understand your Pension Status Report, you can determine your Normal Pension amount as described below.

To determine your Normal Pension amount:

  • For your years of Credited Service earned through 2000: In the table above, find the Monthly Pension Rate that corresponds to the Hourly Contribution Rate for your most recent year (through 2000) of Credited Service. Multiply the Monthly Pension Rate by your total years of Credited Service. This is your monthly pension amount for service earned through 2000.
  • For Credited Service earned in 2001 and after: The Monthly Pension Rate for each individual year of Credited Service will be based on the Hourly Contribution Rate paid by your employer for that year. First, multiply the Monthly Pension Rate for each year by your Credited Service earned for that year. Then, add up the amounts you have calculated. This is your monthly pension amount for service earned after 2000.
  • As previously noted, during the period from 2006 to 2008, you may be entitled to a pension calculated based on an Employer Hourly Contribution Rate that is higher than the 57¢, 62¢ or 67¢ rate paid by your employer. This will occur if your employer and the union had a collective bargaining agreement that expired some time during this period. Contact the Pension Department at the Benefits Fund Office for more information.

  • Total Pension Amount: If you have Credited Service both before and after 2001, add together the two amounts you calculated above. This is your monthly Normal Pension amount.
Example:
  • You are retiring at age 65 on December 1, 2015.
  • You earned 25 years of Credited Service through 2010 and your employer’s Hourly Contribution Rate was sufficient for you to earn the highest Monthly Pension Rate available.
  • You earned 5 years of Credited Service after 2010 and your employer’s Hourly Contribution Rate was sufficient for you to earn the highest Monthly Pension Rate available.

Your monthly Normal Pension will be:

25 years of Credited Service earned through 12/2010 x $53 = $1,325
5 years of Credited Service earned for 2011 through 2015 x $35 = $175
Monthly Normal Pension payable for your lifetime = $1,500

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Determining Your Early Pension Amount

Your Early Pension is the pension payable to you as early as age 55 if you have earned at least 10 years of Eligibility Service without a Break-in-Service. An Early Pension that begins before your Normal Retirement Age, is payable in a reduced amount because you will be receiving pension payments for a longer period of time.

The calculation of your Early Pension amount is somewhat difficult as there are many factors involved. If you leave Covered Employment before age 55, it is best to have the Pension Department prepare an estimate of your Early Pension. Contact the Pension Department to request an estimate; we can also answer any questions you may have about taking your pension at an early age.

If you are age 55 or older when you leave Covered Employment, you may calculate your Early Pension amount as follows:

  First, determine your Normal Pension amount by following the steps above.

  Then reduce this amount by:

for any amount you earned for service accrued through 2010, reduce that amount by 1/3 of 1% for each month (4% per year) that you retire before age 60.

for any amount you earned for service accrued in 2011 or after, reduce that amount by 0.588% for each month (approximately, 7% per year) that you retire before age 62.

  This is your monthly Early Pension amount payable with no reduction for optional forms of payment.

Example #1—Retirement from Active Covered Employment at Age 60

  • You are actively working in Covered Employment and want to retire at age 60 on December 1, 2015.
  • You earned 30 years of Credited Service, as detailed below.
  • Your employer’s Hourly Contribution Rate is sufficient for you to earn the highest Monthly Pension Rate available.
First, determine your monthly Normal Pension:

25 years of Credited Service earned through 12/2010 x $53 = $1,325
5 years of Credited Service earned for 2011 through 2015 x $35 = $175
Monthly Normal Pension payable for your lifetime = $1,500

Then calculate your monthly Early Pension:

Early Reduction Amount on pension earned for service accrued through 2010 (4% for each year that you retire before age 60) = $0.00
Early Reduction Amount on pension earned for service accrued 2011 through 2015 (determined based on an actuarial factor that reduces the amount to 82.51% of the pension earned) = $30.61
Total Early Reduction Amount = $30.61
Monthly Early Pension payable for your lifetime (Normal Pension minus Total Early Reduction Amount) = $1,469.39

Example #2—Retirement at Age 58 Several Years after Leaving Covered Employment

  • You are last worked in Covered Employment in 2012.
  • You want to retire at age 58 on December 1, 2020.
  • You earned 25 years of Credited Service, as detailed below.
  • Your employer’s Hourly Contribution Rate is sufficient for you to earn the highest Monthly Pension Rate available.
First, determine your monthly Normal Pension:

23 years of Credited Service earned through 12/2010 x $53 = $1,219
2 years of Credited Service earned for 2011 and 2012 x $35 = $70
Monthly Normal Pension payable for your lifetime = $1,289

Then calculate your monthly Early Pension:

Early Reduction Amount on pension earned for service accrued through 2010 (4% for each year that you retire before age 60) = $97.52
Early Reduction Amount on pension earned for service accrued 2011 and 2012 (determined based on an acturial factor that reduces the amount to 50.65% of the pension earned) = $34.55
Total Early Reduction Amount = $132.07
Monthly Early Pension payable for your lifetime (Normal Pension minus Total Early Reduction Amount) = $1,156.93

If you leave Covered Employment before age 55, it is best to have the Pension Department prepare an estimate of your Early Pension. Contact the Pension Department to request an estimate.

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Determining Your Disability Pension Amount

Your Disability Pension is the pension payable to you at any age if you become permanently disabled. Refer to the Disability Retirement requirements listed on the “Retirement Ages and Types” page of this website.

Your monthly Disability Pension amount is the same as your Normal Pension amount. See Determining Your Normal Pension Amount above to determine the amount of your Disability Pension.

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(Updated 06/20/13)



 
     
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