Understanding the Design of the Post-2015 STRP Benefit
The design of the post-2015 STRP benefit can be boiled down into a simple formula: core benefits + conditional increases = lifetime retirement income.
The core benefits are the benefits you receive regardless of the funded status of the Plan. They are based on a career-average-earnings formula that considers the earnings and service you earn each year to determine the core portion of your future retirement income. Conditional increases are not guaranteed but are provided based on the financial health of the Plan. However, over time those increases will continue to compound. As a result, your pension grows in two ways: based on the earnings and service you have earned each year and based on the financial health of the Plan.