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.

  1. Full year $636.80 x 26/26 = $636.80
  2. Partial year $636.80 x 13/26 = $318.40

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

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

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

  1. Full year $600.00 x 26/26 = $600.00
  2. 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.

  1. Full year $5,731.20 - $600.00 = $5,131.00
  2. 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.

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

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

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

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

  1. Full year $600.00 x 26/26 = $600.00
  2. 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.

  1. Full year $14,731.20 - $600.00 = $14,131.00
  2. 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 ($99,300.001 - $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.

  1. Full year $1,722.22 x 26/26 = $1,722.22
  2. Partial year $1,722.22 x 13/26 = $861.11
  3. Partial year $1,722.22 x 22/26 = $1,457.26

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

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

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

  1. Full year $600.00 x 26/26 = $600.00
  2. Partial year $600.00 x 13/26 = $300.00
  3. 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.

  1. Full year $15,499.98 - $600.00 = $14,900.00
  2. Partial year $7,749.99 - $300.00 = $7,450.00
  3. 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

1FOR 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

  1. Yearly Maximum Pensionable Earnings (YMPE) for this year $ ______________
  2. Pensionable earnings (element 7342) $ ______________
  3. Number of pensionable pay periods (element 1182) ______________
  4. Total number of pay periods in the year (biweekly = 26)   ______________
  5. Annualized pensionable earnings: (B ÷ C) x D $ ______________

2For 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