# ARCHIVED Appendix A - Pension Adjustment Calculator for 2000

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## Example 1--Annual pensionable salary: $45,000.00

**Step 1:** Determine the annual benefit :

- (1.3% x $37,600.00) + [2.0% x ($45,000.00 - $37,600.00)]
- $488.80 + $148.00
- $636.80 (benefit entitlement)

**Step 2:** If the annual benefit entitlement is greater than $1,722.22,

- IMPOSE $1,722.22

(In this case benefit entitlement does not exceed $1,722.22)

**Step 3:** Prorate the benefit entitlement by the number of pensionable pay periods.

- Full year $636.80 x 26/26 = $636.80
- Partial year $636.80 x 13/26 = $318.40

**Step 4:** Multiply the result of step 3 by a factor of 9.

- Full year $636.80 x 9 = $5,731.20
- Partial year $318.40 x 9 = $2,865.60

**Step 5:** Prorate $600.00 by the number of pensionable pay periods.

- Full year $600.00 x 26/26 = $600.00
- Partial year $600.00 x 13/26 = $300.00

**Step 6:** Subtract the result of step 5 from the result of step 4; this result, rounded to the nearest dollar, is the Pension Adjustment (PA) for 2000.

- Full year $5,731.20 - $600.00 = $5,131.00
- Partial year $2,865.60 - $300.00 = $2,566.00

**Step 7:** If the result is greater than $14,900.00,

- IMPOSE $14,900.00

## Example 2--Annual pensionable salary: $95,000.00

**Step 1:** Determine the annual benefit :

- (1.3% x $37,600.00) + [2.0% x ($95,000.00 - $37,600.00)]
- $488.80 + $1,148.00
- $1,636.80 (benefit entitlement)

**Step 2:** If the annual benefit entitlement is greater than $1,722.22,

- IMPOSE $1,722.22

(In this case benefit entitlement does not exceed $1,722.22)

**Step 3:** Prorate the benefit entitlement by the number of pensionable pay periods.

- Full year $1,636.80 x 26/26 = $1,636.80
- Partial year $1,636.80 x 22/26 = 1,384.98

**Step 4:** Multiply the result of step 3 by a factor of 9.

- Full year $1,636.80 x 9 = $14,731.20
- Partial year $1,384.98 x 9 = $12,464.82

**Step 5:** Prorate $600.00 by the number of pensionable pay periods.

- Full year $600.00 x 26/26 = $600.00
- Partial year $600.00 x 22/26 = $507.69

**Step 6:** Subtract the result of step 5 from the result of step 4; this result, rounded to the nearest dollar, is the PA for 2000.

- Full year $14,731.20 - $600.00 = $14,131.00
- Partial year $12,464.82 - $507.69 = $11,957.00

**Step 7:** If the result is greater than $14,900.00,

- IMPOSE $14,900.00

## Example 3--Annual pensionable salary: $120,000.00

**Step 1:** Determine the annual benefit :

- (1.3% x $37,600.00) + [2.0% x ($99,300.00
^{1}- $37,600.00)] - $488.80 + $1,234.00
- $1,722.80 (benefit entitlement)

**Step 2:** If the annual benefit entitlement is greater than $1,722.22,

- IMPOSE $1,722.22

**Step 3:** Prorate the benefit entitlement by the number of pensionable pay periods.

- Full year $1,722.22 x 26/26 = $1,722.22
- Partial year $1,722.22 x 13/26 = $861.11
- Partial year $1,722.22 x 22/26 = $1,457.26

**Step 4:** Multiply the result of step 3 by a factor of 9.

- Full year $1,722.22 x 9 = $15,499.98
- Partial year $861.11 x 9 = $7,749.99
- Partial year $1,457.26 x 9 = $13,115.34

**Step 5:** Prorate $600.00 by the number of pensionable pay periods.

- Full year $600.00 x 26/26 = $600.00
- Partial year $600.00 x 13/26 = $300.00
- Partial year $600.00 x 22/26 = $507.69

**Step 6:** Subtract the result of step 5 from the result of step 4; this result, rounded to the nearest dollar, is the PA for 2000.

- Full year $15,499.98 - $600.00 = $14,900.00
- Partial year $7,749.99 - $300.00 = $7,450.00
- Partial year $13,115.34 - $507.69 = $12,608.00

**Step 7:** If the result is greater than $14,900.00,

- IMPOSE $14,900.00

^{1}FOR THE 2000 TAXATION YEAR, THE MAXIMUM SALARY USED IN THE PA CALCULATION WILL BE $99,300.00

## PENSION ADJUSTMENT WORKSHEET

### EMPLOYEE IDENTIFICATION

- Name:
- Personal Record Identifier(PRI):
- PA Calculation for [year] :

### INFORMATION REQUIRED TO CALCULATE THE PA

- Yearly Maximum Pensionable Earnings (YMPE) for this year $ ______________
- Pensionable earnings (element 734
^{2}) $ ______________ - Number of pensionable pay periods (element 118
^{2}) ______________ - Total number of pay periods in the year (biweekly = 26) ______________
- Annualized pensionable earnings: (B ÷ C) x D $ ______________

^{2}For clients serviced by the Regional Pay System

### CALCULATION

#### Step 1: Annual benefit entitlement (maximum $1,722.22 for 2000 and 2001):

*If E is equal to or lesser than the YMPE:*

0.013 x E

0.013 x ( ______________ ) = $ _________________

*If E is greater than the YMPE:*

(0.013 x YMPE) + [0.02 x (E - YMPE)]

(0.013 x __________ ) + [0.02 x ( __________ - __________ )] = $ __________ ^{3}

^{3} If greater than $1,722.22, impose $1,722.22

#### Step 2: Benefit entitlement accrued:

(Annual benefit entitlement ÷ D) x C

(Annual benefit entitlement ÷ D) x C

(_______÷_______) x _________ = $________________

Step 1 (D) (C)

#### Step 3: **Pension adjustment** (maximum $14,900.00 for 2000 and 2001):

(9 x benefit entitlement accrued) - ($600.00 ÷ D x C)

(9 x _______) - ($600.00 ÷ _______ x _______) = $___________^{4}

Step 2 (D) (C)

^{4} If greater than $14,900.00, impose $14,900.00

- Date modified: