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Pension Credits and Experience Apportionments

Your pension grows through

  • annual pension credits for each year of eligible plan participation; and
  • discretionary experience apportionments.

Annual Pension Credits

Pension credits accrue at 1.25 percent of the greater of

  • your effective salary (up to an annual cap); or
  • the applicable median salary, prorated for part-time employees.

For example, if the median salary is $58,000 and your annual effective salary is less than that, your annual pension credits would be 725 ($58,000 x 1.25%). If your effective salary is more than the median, your annual pension credits would be greater.

Annual credits build while you are an active plan participant. For illustration purposes, the examples in the chart below assume that the median salary and your salary do not change for 30 years. Your age at retirement and your payment option may affect this benefit.

​Example Salary
Below Median
​Example Salary
Above Median
Effective Salary$40,000$60,000
Salary Used in Calculation$58,000$60,000
Annual Pension Credit725750
Annual Credit Times 30 Years21,75022,500
Monthly Benefit for Life*$1,812.50$1,875

*Does not reflect any experience apportionments.

Experience Apportionments

Experience apportionments are discretionary increases in pension credits or benefits depending on a member's employment status:

  • For retirees and eligible survivors, an experience apportionment is an increase in the current pension benefit for as long as the person lives, expressed as a percentage of benefits received.
  • For active and terminated vested members, the experience apportionment is an increase in the individual's pension credits accrued as of December 31, expressed as a percentage of accumulated credits.

Experience apportionments are at the sole discretion of the Board of Directors of the Board of Pensions. Factors considered include investment and actuarial experience, reserves, and fundamental fairness to all plan participants, in addition to the policy guidelines in the table below.

Pension Plan
Funding Status*
Less than 110% fundedNo apportionment
110% but less than 120% funded1% apportionment
120% but less than 125% funded2% apportionment
125% funded or more>2% per actuarial analysis

*Fully funded (100%) means the assets equal current and future benefits.