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.