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
- 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.
Salary Used in Calculation||$58,000||$60,000|
Annual Pension Credit||725||750|
Annual Credit Times 30 Years||21,750||22,500|
Monthly Benefit for Life*||$1,812.50||$1,875|
*Does not reflect any 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.
|Less than 110% funded||No apportionment|
|110% but less than 120% funded||1% apportionment|
|120% but less than 125% funded||2% apportionment|
|125% funded or more||>2% per actuarial analysis|
*Fully funded (100%) means the assets equal current and future benefits.