Calculating Component 2
In order to perform the calculation, we first need to know Lindsay’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. The YMPE can be found by visiting www.canada.ca.
| 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 |
To determine Lindsay's earned pension after June 30, 2015, we calculate the pension she earned in each individual year and add those amounts together.
| School 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 | |