Ref Info Circ 1059 - Attachment

School Members Retirement Benefits Comparison

Contribution Deductions

Example:

  • Based on monthly earnings of $2000.00.
  • Contributes to Social Security.

Prior to 1-1-01

After 1-1-01

$2000.00

-133.33

$1866.67

X 7%

$130.67 Contribution

$2000.00

X 7%

$140.00 Contribution

 

 

Service Retirement Calculation

Example:

  • Based on a school member age 55.
  • Final compensation of $2000.00.
  • 25 years of total service earned (12.5 years earned prior to 1-1-01, 12.5 years earned after 1-1-01).
  • Contributing to Social Security.
  • Retirement date 7-1-2013.

Service Earned Prior to 1-1-01

$2000.00

- 133.33

12.5 (years) X 2% (age factor) = 25% X $1866.67 (final compensation) = $466.67

Service Earned After 1-1-01

12.5 (years) X 2% (age factor) = 25% X $2000.00 (final compensation) = $500.00

Both results are added together to equal the total

Unmodified Allowance of: $966.67