Earnings Calculation
HOW TO CALCULATE YOUR PENSION DEDUCTIONS AND 2% PENSION DEDUCTIONS (AKA 30+)
- The 2 % is calculated on those that earn over 30K of regular compensation per calendar year.
- Only regular compensation (guaranteed, predictable, regular) is pensionable.
- You will need to know if you are a 5%, 7%, 8% or 9% contribution rate.
- Rate is determined by membership date.
- Prior to 01/01/1975 5%
- 1/1/75-12/31/1983 7%
- 1/1/84-6/30/96 8%
- 7/1/1996-Present 9%
Your biweekly pay: $ 300.00 (overtime)
$ 800.00 (double time)
$ 320.00 (detail)
$ 2,300.00 (regular pay) ** subject to pension deductions
_______________________
$3,720.00 total pay
Step 1 Take your regular compensation and multiply it by your contribution rate.
For instance if you are 8% and got paid regular compensation of $2,300.00
Take $2,300.00 x 8% = 184.00. This equals your pension deduction.
Step 2 If you get paid 21 Pay Periods Take your regular compensation pay and subtract $1428.57 which is the biweekly
threshold to determine if an additional 2% should be taken out.
(30K divided by 21 pay periods = $1,428.57)
$2,300.00 - $1,428.57 = $ 871.43 which is subject to 2%
$871.43 x 2% = $17.43 as your pension 30+
Step 2 If you get paid 26 Pay Periods Take your regular compensation pay and subtract $1153.85 which is the biweekly
threshold to determine if an additional 2% should be taken out.
(30K divided by 26 pay periods = $1,153.85)
$2,300.00 - $1,153.85 = $ 1,146.15 which is subject to 2%
$1,146.15 x 2% = $22.95 as your pension 30+
Step 3 Contact your payroll department if your pension deductions are incorrect.