Calculating the Pension

In order to perform the calculation, we first need to know Ashley’s annualized earnings for each year she was a member of the Plan, the amount of the contributory service she had in each year, and the Year’s Maximum Pensionable Earnings.

School Year YMPE Earnings Contributory
Service
2015/16 $54,900 $84,300 1.00
2016/17 $55,300 $85,900 1.00
2017/18 $55,900 $85,900 1.00
2018/19 $57,400 $86,800 1.00
2019/20 $58,700 $86,800 1.00

Then we plug those details into the benefit formula. The calculation is performed for each individual year in which Ashley was a member of the Plan. Then, we add up the pension earned in each individual year to get Ashley’s annual pension.

Year Pension Calculation Pension Earned
2015/16 [1.3% x $54,900 + 2.0% x ($84,300 - $54,900)] x 1 $1,302
2016/17 [1.3% x $55,300 + 2.0% x ($85,900 - $55,300)] x 1 $1,331
2017/18 [1.3% x $55,900 +2.0% x ($85,900 - $55,900)] x 1 $1,327
2018/19 [1.3% x $57,400 + 2.0% x ($86,800 - $57,400)] x 1 $1,334
2019/20 [1.3% x $58,700 + 2.0% x ($86,800 - $58,700)] x 1 $1,325
Total $6,619/yr or $552/mo

 

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