Calculating Component 1

First, let’s take a look at the formula for calculating component 1.

For all service up to June 30, 2015

Here are the important numbers to help us utilize this equation:

  • Lindsay’s service up to June 30, 2015: 15 years
  • Her Final Average Earnings (FAE), calculated using her earnings from July 1, 2010 to June 30, 2015: $77,800
  • Average YMPE: $51,120 (from 2015 and the previous four years)

Lindsay's earned pension up to June 30, 2015

[1.3% $51,120

2.0% ($77,800 $51,120)]

15
17,972/yr
$