Benefit Calculations
Overview | Eligibility
| How the Plan Works | Benefit
Calculations | Payment Options
| Administrative Details
• Normal Retirement
• Accrued Pension
• Early Retirement
Normal Retirement Accrued Pension Benefit Calculation
If you were participating in a former Mercy or Holy Cross Pension Plan and
had an accrued pension benefit
as of December 31, 2001, your accrued pension benefit would be included in your
pension benefit.
When calculating your accrued pension benefit, three factors must be considered:
- Your accrued pension benefit under the Trinity Health Pension Plan formula.
- Your accrued pension benefit as of December 31, 2001 from former Mercy or
Holy Cross plans.
- Your pay adjustment factor, equal to the ratio of your current average compensation
over your average compensation of December 31, 2001.
Your total pension benefit at age 65 is:
| Your accrued pension
benefit under the Trinity Health Pension Plan formula |
| Plus |
|
Your accrued pension benefit as
of December 31, 2001
under the former plan, multiplied by a pay adjustment factor. |
Example
Pat is a Trinity Health employee who is retiring at age 65 on July 1, 2015. Pat
has an accrued pension benefit of $236.25 as of December 31, 2001. She has an
additional 13.55 years of credited service after December 31, 2001. Pat's monthly
average salary in 2001 was $2,500 and in 2015 it is $4,250. One-half of the 5-year
average of the Social Security wage base is $4,000 in 2015.
| Step 1: Determine
accrued benefit under the Trinity Health Pension Plan formula |
|
1.0% x $4,000 x 13.55 = |
$542.00 |
| 1.5% x ($4,250 - $4,000) x 13.55
= |
+ $50.81 |
| Total Monthly Benefit |
= $592.81 |
| Step 2: Determine
the pay adjustment factor
The Pay Adjustment Factor is equal to: |
| Final average compensation
at calculation date (7/1/15) |
$4,250 |
=1.7 |
| Final average compensation at 12/31/01 |
$2,500 |
|
Step 3: Multiply
the accrued pension benefit as of 12/31/01 under the former plan
by the pay adjustment factor |
| The accrued pension benefit as
of 12/31/01 under the former plan was $236.25. To update this accrued pension
benefit for increases in the final average compensation that occur after January
1, 2001, you need to multiply the accrued pension benefit by the pay adjustment
factor. |
|
$236.25 x 1.7 = $401.63 |
| Step 4: Compute
the Total Pension Benefit |
| New Accrued Benefit |
$592.81 |
12/31/01 Accrued Benefit under former
Plan
(adjusted for future compensation increases)
|
+ $401.63 |
| Pat's Total Monthly Pension Benefit
at Normal Retirement (Age 65) |
= $994.44 |
Back to Benefit Calculations Main Page |
