Calculating Benefits
How lump sum benefits are calculated?
All lump sum benefits are determined using the following components:
- Total employee contributions
- Total employer contributions
- Index amount (compensation for loss of value)
- Interest amount
How normal retirement and survivor’s pension benefits are calculated?
Normal retirement and survivor’s pension benefits are determined using the following components:
- Salary – average indexed monthly earnings
- Replacement rate (0.001111XM), Where M =Months of pensionable employment
How early retirement pension benefits are calculated?
Early retirement pension benefits are determined using the following components:
- Salary – average indexed monthly earnings
- Replacement rate (0.001111XM), Where M =Months of pensionable employment
- Number of months between early retirement and attainment of normal retirement
How invalidity pension benefits are calculated?
Invalidity pension benefits are determined using the following components:
- Compensation for lost years
- Salary – average indexed monthly earnings
- Number of years lost from works as a result of invalidity
- Greater of monthly pension and minimum pension
What is compensation for loss of value?
Compensation for loss of value is the adjustment of a member’s contributions to NAE (wage inflation), and the indexation factor applied to each year of contributions is calculated as follows:
- NAE in year of statutory retirement/invalidity/death
- NAE in year of contribution