Basic Plan Pension Accrual Rates
If your initial date of participation in the Basic Plan is on or after to January 1, 2020, your Basic Plan benefit amount will accrue at 93% of the amount calculated in accordance with the Career Average Earnings or Credited Service Month formula as applicable, provided such rate of accrual is increased in accordance with the following chart, depending on the total number of Credited Service Months earned:
| Total Credited Service Months | Rate of Accrual* |
|---|---|
| Less than or equal to 131 CSMs | 93% |
| 132 – 143 CSMs | 94.4% |
| 144 – 155 CSMs | 95.8% |
| 156 – 167 CSMs | 97.2% |
| 168 – 179 CSMs | 98.6% |
| 180 or more CSMs | 100% |
| *Percentage of benefit amount as calculated using the Credited Service Months or Career Average Earnings formula as applicable | |
Under the schedule above, a new participant (i.e., initial date of participation on or after January 1, 2020) shall accrue pension benefits at the rate of 93% until he or she earns 132 Credited Service Months, at which point his or her accrual rate will increase by 1.4% for each additional 12 CSMs earned until eventually reaching 100% after earning 180 Credited Service Months. The applicable accrual rate corresponding to the total Credited Service Months earned shall apply to all Credited Service Months earned under the Plan.
If your initial date of participation in the Basic Plan is prior to January 1, 2020, you are not subject to the accrual rates as described above. Your Basic Plan benefit amount is calculated in accordance with the Career Average Earnings or Credited Service Month formula as applicable.
