31 C.F.R. Subpart C—Split Benefits
Title 31 - Money and Finance: Treasury
Source: 65 FR 77501, Dec. 12, 2001, unless otherwise noted.
(a) The purpose of this subpart is to addresses the legal and policy issues that affect the calculation of the Federal and District of Columbia portions of benefits under subtitle A of Title XI of the Balanced Budget Act of 1977, Public Law 105–33, 111 Stat. 251, 712–731, enacted August 5, 1997, as amended. (1) This subpart states general principles for the calculation of Federal Benefit Payments in cases in which the Department and the District government are both responsible for paying a portion of an employee's total retirement benefits under the Police and Firefighters Plan or the Teachers Plan. (2) This subpart provides illustrative examples of sample computations to show the application of the general principles to specific problems. (b)(1) This subpart applies only to benefits under the Police and Firefighters Plan or the Teachers Plan for individuals who have performed service creditable under these programs on or before June 30, 1997. (2) This subpart addresses only those issues that affect the split of fiscal responsibility for retirement benefits (that is, the calculation of Federal Benefit Payments). (3) Issues relating to determination and review of eligibility and payments, and financial management, are beyond the scope of this subpart. (c) This subpart does not apply to benefit calculations under the Judges Plan. In this subpart (including appendix A of this subpart)— Deferred retirement means retirement under section 4–623 of the D.C. Code (1997) (under the Police and Firefighters Plan) or section 31–1231(a) of the D.C. Code (1997) (under the Teachers Plan). Deferred retirement age means the age at which a deferred annuity begins to accrue, that is, age 55 under the Police and Firefighters Plan and age 62 under the Teachers Plan. Department service or departmental service means any period of employment in a position covered by the Police and Firefighters Plan or Teachers Plan. Department service or departmental service may include certain periods of military service that interrupt a period of employment under the Police and Firefighters Plan or the Teachers Plan. Disability retirement means retirement under section 4–615 or section 4–616 of the D.C. Code (1997) (under the Police and Firefighters Plan) or section 31–1225 of the D.C. Code (1997) (under the Teachers Plan), regardless of whether the disability was incurred in the line of duty. Enter on duty means commencement of employment in a position covered by the Police and Firefighters Plan or the Teachers Plan. Excess leave without pay or excess LWOP means a period of time in a non-pay status that in any year is greater than the amount creditable as service under §29.105(d). Hire date means the date the employee entered on duty. Military service means— (1) For the Police and Firefighters Plan, military service as defined in section 4–607 of the D.C. Code (1997) that is creditable as other service under section 4–602 or section 4–610 of the D.C. Code (1997); and (2) For the Teachers Plan, military service as described in section 31–1230(a)(4) of the D.C. Code (1997). Optional retirement means regular longevity retirement under section 4–618 of the D.C. Code (1997) (under the Police and Firefighters Plan) or section 31–1224(a) of the D.C. Code (1997) (under the Teachers Plan). Other service means any period of creditable service other than departmental service or unused sick leave. Other service includes service that becomes creditable upon payment of a deposit, such as service in another school system under the Teachers Plan (under section 31–1208 of the D.C. Code (1997)); and service that is creditable without payment of a deposit, such as military service occurring prior to employment under the Police and Firefighters Plan. Pre-80 hire means an individual whose annuity is computed using the formula under the Police and Firefighters Plan applicable to individuals hired before February 15, 1980. Pre-96 hire means an individual whose annuity is computed using the formula under the Teachers Plan applicable to individuals hired before November 10, 1996. Sick leave means unused sick leave, which is creditable in a retirement computation, as calculated under §29.105(c). Only service performed on or before June 30, 1997, is credited toward Federal Benefit Payments. Service is counted toward Federal Benefit Payments only if all requirements for the service to be creditable are satisfied as of June 30, 1997. Except as otherwise provided in this subpart, the amount of Federal Benefit Payments is computed based on retirement eligibility as of the separation date and service creditable as of June 30, 1997.
Title 31: Money and Finance: Treasury
PART 29—FEDERAL BENEFIT PAYMENTS UNDER CERTAIN DISTRICT OF COLUMBIA RETIREMENT PROGRAMS
Subpart C—Split Benefits
§ 29.301 Purpose and scope.
§ 29.302 Definitions.
General Principles for Determining Service Credit To Calculate Federal Benefit Payments
§ 29.311 Credit only for service performed on or before June 30, 1997.
§ 29.312 All requirements for credit must be satisfied by June 30, 1997.
§ 29.313 Federal Benefit Payments are computed based on retirement eligibility as of the separation date and service creditable as of June 30, 1997.
Service Performed After June 30, 1997
§ 29.321 General principle.
Any service performed after June 30, 1997, may never be credited toward Federal Benefit Payments.
§ 29.322 Disability benefits.
If an employee separates for disability retirement after June 30, 1997, and, on the date of separation, the employee—
(a) Satisfies the age and service requirements for optional retirement, the Federal Benefit Payment commences immediately, that is, the Federal Benefit Payment is calculated as though the employee retired under optional retirement rules using only service through June 30, 1997 (See examples 7A and 7B of appendix A of this subpart); or
(b) Does not satisfy the age and service requirements for optional retirement, the Federal Benefit Payment begins when the disability retiree reaches deferred retirement age. (See §29.343.)
All Requirements for Credit Must Be Satisfied by June 30, 1997
§ 29.331 General principle.
To determine whether service is creditable for the computation of Federal Benefit Payments under this subpart, the controlling factor is whether all requirements for the service to be creditable under the Police and Firefighters Plan or the Teachers Plan were satisfied as of June 30, 1997.
§ 29.332 Unused sick leave.
(a) For employees separated for retirement as of June 30, 1997, Federal Benefit Payments include credit for any unused sick leave that is creditable under the applicable plan.
(b) For employees separated for retirement after June 30, 1997, no unused sick leave is creditable toward Federal Benefit Payments.
§ 29.333 Military service.
(a) For employees who entered on duty on or before June 30, 1997, and whose military service was performed prior to that date, credit for military service is included in Federal Benefit Payments under the terms and conditions applicable to each plan.
(b) For employees who enter on duty after June 30, 1997, military service is not creditable toward Federal Benefit Payments, even if performed as of June 30, 1997.
(c) For employees who entered on duty on or before June 30, 1997, but who perform military service after that date, the credit for military service is not included in Federal Benefit Payments.
§ 29.334 Deposit service.
(a) Teachers Plan. (1) Periods of civilian service that were not subject to retirement deductions at the time they were performed are creditable for Federal Benefit Payments under the Teachers Plan if the deposit for the service was paid in full to the Teachers Plan as of June 30, 1997.
(2) No credit is allowed for Federal Benefit Payments under the Teachers Plan for any period of civilian service that was not subject to retirement deductions at the time it was performed if the deposit for the service was not paid in full as of June 30, 1997.
(b) Police and Firefighters Plan. No credit is allowed for Federal Benefit Payments under the Police and Firefighters Plan for any period of civilian service that was not subject to retirement deductions at the time that the service was performed. (See definition of “governmental service” at D.C. Code section 4–607(15) (1997).)
§ 29.335 Refunded service.
(a) Periods of civilian service that were subject to retirement deductions but for which the deductions were refunded to the employee are creditable for Federal Benefit Payments if the redeposit for the service was paid in full to the District government as of June 30, 1997.
(b) No credit is allowed for Federal Benefit Payments for any period of civilian service that was subject to retirement deductions but for which the deductions were refunded to the employee if the redeposit for the service was not paid in full to the District government as of June 30, 1997.
Calculation of the Amount of Federal Benefit Payments
§ 29.341 General principle.
Except for disability retirements after June 30, 1997, and certain death benefits based on deaths after June 30, 1997, in which the calculation is not based upon length of service (see §29.344); for cases in which some service is creditable on or before June 30, 1997, and some service is creditable after June 30, 1997, Federal Benefit Payments are computed under the rules of the applicable plan as though—
(a) The employee were eligible to retire effective July 1, 1997, under the same conditions as the actual retirement (that is, using the annuity computation formula that applies under the plan in effect on June 29, 1997, and the actual retirement age, including any applicable age reduction, based on the age at actual retirement);
(b) The service that became creditable after June 30, 1997, did not exist; and
(c) The average salary is the average salary at separation.
Note to §29.341: See examples 7B, 9, and 13 of appendix A of this subpart.
§ 29.342 Computed annuity exceeds the statutory maximum.
(a) In cases in which the total computed annuity exceeds the statutory maximum:
(1) Federal Benefit Payments may equal total benefits even if the employee had service after June 30, 1997.
(2) If the employee had sufficient service as of June 30, 1997, to qualify for the maximum annuity under the plan, the Federal Benefit Payment is the maximum annuity under the plan. This will be the entire benefit except for any amount in excess of the normal maximum due to unused sick leave, which is the responsibility of the District. (See example 3, of appendix A of this subpart.)
(b) If the employee did not perform sufficient service as of June 30, 1997, to reach the statutory maximum benefit, but has sufficient service at actual retirement to exceed the statutory maximum, the Federal Benefit Payment is the amount earned through June 30, 1997. The non-Federal-Benefit-Payment portion of the total benefit consists of only the amount by which the total benefit payable exceeds the Federal Benefit Payment.
§ 29.343 Disability benefits.
(a) The general rule that Federal Benefit Payments are calculated under the applicable retirement plan as though the employee were eligible for optional retirement and separated on June 30, 1997, does not apply to disability benefits prior to optional retirement age.
(b) In cases involving disability benefits prior to optional retirement age, no Federal Benefit Payment is payable until the retiree reaches the age of eligibility to receive a deferred annuity (age 55 under the Police and Firefighters Plan and age 62 under the Teachers Plan). When the age for deferred annuity is reached, the Federal Benefit Payment is paid using creditable service accrued as of June 30, 1997, and average salary (computed under the rules for the applicable plan) as of the date of separation. (See examples 6 and 7 of appendix A of this subpart.)
§ 29.344 Survivor benefits.
(a) The general rule that Federal Benefit Payments are calculated under the applicable retirement plan as though the employee were eligible for optional retirement and separated on June 30, 1997, does not apply to death benefits that are not determined by length of service.
(b) In cases in which the amount of death benefits is not determined by length of service, the amount of Federal Benefit Payments is calculated by multiplying the amount of the total benefit payable by the number of full months of service through June 30, 1997, and then dividing by the number of months of total service at retirement (for elected survivor benefits) or death (for guaranteed-minimum death-in-service survivor benefits). (See example 13 of appendix A of this subpart.)
§ 29.345 Cost-of-living adjustments.
Cost-of-living increases are applied directly to Federal Benefit Payments, rather than computed on the total benefit and then prorated. (See example 14 of appendix A of this subpart.)
§ 29.346 Reduction for survivor benefits.
(a) If a retiree designates a base for a survivor annuity that is greater than or equal to the unreduced Federal Benefit Payment, the applicable plan's annuity reduction formula is applied to the unreduced Federal Benefit Payment to determine the reduced Federal Benefit Payment. (See example 10 of appendix A of this subpart.)
(b) If a retiree designates a base for a survivor annuity that is less than the amount of the Federal Benefit Payment, the entire survivor reduction applies to the Federal Benefit Payment to determine the reduced Federal Benefit Payment.
Appendix A to Subpart C of Part 29—Examples
This appendix contains sample calculations of Federal Benefit Payments in a variety of situations.
Optional Retirement Examples
Example 1: No Unused Sick Leave
A. In this example, an individual covered by the Police and Firefighters Plan hired before 1980 retires in October 1997. At retirement, he is age 51 with 20 years and 3 days of departmental service plus 3 years, 4 months, and 21 days of military service that preceded the departmental service. The Federal Benefit Payment begins at retirement. It is based on the 19 years, 8 months, and 22 days of departmental service and 3 years, 4 months, and 21 days of military service performed as of June 30, 1997. Thus, the Federal Benefit Payment is based on 23 years and 1 month of service, all at the 2.5 percent accrual rate. The total annuity is based on 23 years and 4 months of service, all at the 2.5 percent accrual rate.
Example 1A_Police Optional [Pre-80 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 09/10/46Hire date: 10/09/77Separation date: 10/11/97Department service: 20/00/03Other service: 03/04/21Sick leave:.025 service: 23.333333.03 service:Average salary: $45,680.80Total: $26,647.12Total/month: $2,221.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 9/10/46Hire date: 10/09/77Freeze date: 06/30/97Department service: 19/08/22Other service: 03/04/21Sick leave:.025 service: 23.083333.03 service:Average salary: $45,680.80Total: $26,361.61Total/month: $2,197.00------------------------------------------------------------------------
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B. In this example, the individual covered by the Police and Firefighters Plan was hired earlier than in example 1A and thus performed more service as of both June 30, 1997, and retirement in October 1997. At retirement, he is age 51 with 21 years, 11 months and 29 days of departmental service plus 3 years, 4 months, and 21 days of military service that preceded the departmental service. The Federal Benefit Payment begins at retirement. It is based on the 21 years, 8 months, and 18 days of departmental service and 3 years, 4 months, and 21 days of military service performed as of June 30, 1997. Thus, the Federal Benefit Payment is based on 25 years and 1 month of service, 1 year and 8 months at the 3.0 percent accrual rate and 23 years and 5 months at the 2.5 percent accrual rate (including 1 month consisting of 18 days of departmental service and 21 days of other service). The total annuity is based on 25 years and 4 months of service, 1 year and 11 months at the 3.0 percent accrual rate and 23 years and 5 months at the 2.5 percent accrual rate (including 1 month consisting of 29 days of departmental service and 21 days of other service). |
Example 1B_Police Optional [Pre-80 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 09/10/46Hire date: 10/13/75Separation date: 10/11/97Department service: 21/11/29Other service: 03/04/21Sick leave:.025 service: 23.416667.03 service: 1.916667Average salary: $45,680.80Total: $29,368.96Total/month $2,447.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 09/10/46Hire date: 10/13/75Freeze date: 06/30/97Department service: 21/08/18Other service: 03/04/21Sick leave:.025 service: 23.416667.03 service: 1.666667Average salary: $45,680.80Total: $29,026.36Total/month: $2,419.00------------------------------------------------------------------------
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Example 2: Unused Sick Leave Credit In this example, an individual covered by the Police and Firefighters Plan and hired before 1980 retires in March 1998. At retirement, she is age 48 with 24 years, 8 months, and 6 days of departmental service plus 6 months and 4 days of other service (deposit paid before June 30, 1997) and 11 months and 11 days of unused sick leave. For a police officer (or a non-firefighting division firefighter) such an amount of sick leave would be 1968 hours (246 days, based on a 260-day year, times 8 hours per day). For a firefighting division firefighter, such an amount would be 2069 hours (341 days divided by 360 days per year times 2184 hours per year). The Federal Benefit Payment begins at retirement. It is based on the 23 years, 11 months, and 23 days of departmental service performed as of June 30, 1997, and 6 months and 4 days of other service. Thus, the Federal Benefit Payment is based on 20 years departmental and 6 months of other service at the 2.5 percent accrual rate and 3 years and 11 months of service at the 3.0 percent accrual rate. The total annuity is based on 20 years and 6 months of service at the 2.5 percent accrual rate and 5 years and 7 months of service at the 3 percent accrual rate. |
Example 2_Police Optional [Pre-80 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 05/01/49Hire date: 07/08/73Separation date: 03/13/98Department service: 24/08/06Other service: 00/06/04Sick leave: 00/11/11.025 service: 20.5.03 service: 5.583333Average salary: $61,264.24Total: $41,659.68Total/month: $3,472.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 05/01/49Hire date: 07/08/73Freeze date: 06/30/97Department service: 23/11/23Other service: 00/06/04Sick leave:.025 service: 20.5.03 service: 3.916667Average salary: $61,264.24Total: $38,596.47Total/month: $3,216.00------------------------------------------------------------------------
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Example 3: Calculated Benefit Exceeds Statutory Maximum A. In this example, an individual covered by the Police and Firefighters Plan hired before 1980 retires in March 1998. At retirement, he is age 55 with 32 years and 17 days of departmental service. The Federal Benefit Payment begins at retirement. It is based on the 31 years, 3 months, and 17 days of departmental service performed as of June 30, 1997. Thus, the Federal Benefit Payment is based on 20 years of service at the 2.5 percent accrual rate and 11 years and 3 months of service at the 3.0 percent accrual rate. However, the annuity is limited to 80 percent of the basic salary at time of retirement. (This limitation does not apply to the unused sick leave credit.) The annuity computed as of June 30, 1997, equals the full benefit payable; therefore, the Federal Benefit Payment is the total benefit. |
Example 3A_Police Optional [Pre-80 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 06/12/42Hire date: 03/14/66Separation date: 03/30/98Department service: 32/00/17Other service:Sick leave:.025 service: 20.03 service: 12Average salary: $75,328.30Final salary: $77,180.00Total: $64,782.34Total/month: $5,399.00Maximum: $61,744.00 $5,145.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 06/12/42Hire date: 03/14/66Freeze date: 03/30/97Department service: 31/03/17Other service:Sick leave:.025 service: 20.03 service: 11.25Average salary: $75,328.30Final salary: $77,180.00Total: $63,087.45Total/month: $5,257.00Maximum: $61,744.00 $5,145.00------------------------------------------------------------------------
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B. In this example, the individual in example 3A also has 6 months of unused sick leave at retirement. The sick leave credit is not subject to the 80% limitation and does not become creditable service until the date of separation. For a police officer (or a non-firefighting division firefighter) such an amount of sick leave would be 1040 hours (130 days, based on a 260-day year, times 8 hours per day). For a firefighting division firefighter, such an amount would be 1092 hours (180 days divided by 360 days per year times 2184 hours per year). Six months of unused sick leave increases the annual total benefit by 1.5 percent of the average salary, or in the example by $94 per month. The District is responsible for the portion of the annuity attributable to the unused sick leave because it became creditable at retirement, that is, after June 30, 1997. |
Example 3B_Police Optional [Pre-80 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 06/12/42Hire date: 03/14/66Separation date: 03/30/98Department service: 32/00/17Other service:Sick leave:.025 service: 20.03 service: 12Average salary: $75,328.30Final salary: $77,180.00Total wo/sl credit: $64,782.34Total/month: $5,399.00Max wo/sl credit: $61,744.00Max w/sl credit: $62,873.92Monthly benefit: $5,239.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 06/12/42Hire date: 03/14/66Freeze date: 06/30/97Department service: 31/03/17Other service:Sick leave: none.025 service: 20.03 service: 11.25Average salary: $75,328.30Final salary: $77,180.00Total: $63,087.45Total/month: $5,257.00Maximum: $61,744.00Monthly benefit: $5,145.00------------------------------------------------------------------------
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Example 4: Excess Leave Without Pay In this example, an individual covered by the Teachers Plan hired before 1996 retires in February 1998. At retirement, she is age 64 with 27 years of departmental service and 6 years, 7 months, and 28 days of other service (creditable before June 30, 1997). However, only 6 months of leave in a fiscal year without pay may be credited toward retirement under the Teachers Plan. She had 3 months and 18 days of excess leave without pay as of June 30, 1997. Since the excess leave without pay occurred before June 30, 1997, the time attributable to the excess leave without pay is subtracted from the service used in both the Federal Benefit Payment and the total benefit computations. The Federal Benefit Payment begins at retirement. It is based on the 32 years and 8 months of service (32 years, 11 months, and 28 days minus 3 months and 18 days and the partial month dropped); 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate, and 22 years and 8 months of service at the 2 percent accrual rate. The total annuity is based on 33 years and 4 months of service (33 years, 7 months and 28 days minus 3 months and 18 days and the partial month dropped) 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate and 23 years and 4 months of service at the 2 percent accrual rate. Note: For the Teachers Plan, section 1230(a) of title 31 of the DC Code (1997) allows for 6 months leave without pay in any fiscal year. For the Police and Firefighters Plan, section 610(d) of title 4 of the DC Code (1997) allows for 6 months leave without pay in any calendar year. |
Example 4_Teachers Optional [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 11/04/33Hire date: 03/01/71Separation date: 02/28/98Department service: 27/00/00Other service: 06/07/28Excess LWOP: 00/03/18.015 service: 5.0175 service: 5.02 service: 23.333333Average salary: $53,121.00Total: $33,421.98Total/month: $2,785.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 11/04/33Hire date: 03/01/71Freeze date: 06/30/97Department service: 26/04/00Other service: 06/07/28Excess LWOP: 00/03/18.015 service: 5.0175 service: 5.02 service: 22.666667Average salary: $53,121.00Total: $32,713.66Total/month: $2,726.00------------------------------------------------------------------------
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Example 5: Service Credit Deposits A. An individual covered by the Teachers Plan hired before 1996 retires in October 1997. At retirement, he is age 61 with 30 years and 3 days of departmental service plus 3 years, 4 months, and 21 days of other service that preceded the departmental service for which the deposit was fully paid on or before June 30, 1997. The Federal Benefit Payment begins at retirement. It is based on the 29 years, 8 months, and 22 days of departmental service and 3 years, 4 months, and 21 days of service performed as of June 30, 1997. Thus, the Federal Benefit Payment is based on 33 years and 1 month of service; 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate, and 23 years and 1 month of service at the 2 percent accrual rate. The total annuity is based on 33 years and 4 months of service; 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate and 23 years and 4 months of service at the 2 percent accrual rate. |
Example 5A_Teachers Optional [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 09/10/36Hire date: 10/09/67Separation date: 10/11/97Department Service: 30/00/03Other service: 03/04/21Deposit paid before freeze date:Other service credit allowed:Sick leave:.015 service: 5.0175 service: 5.02 service: 23.333333Average salary: $45,680.80Total: $28,740.85Total/month: $2,395.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 09/10/36Hire date: 10/09/67Freeze date: 06/30/97Department service: 29/08/22Other service: 03/04/21Deposit paid before freeze date:Other service credit allowed:Sick Leave:.015 service: 5.0175 service: 5.02 service: 23.08333; 13 days droppedAverage salary: $45,680.80Total: $28,512.45Total/month: $2,376.00------------------------------------------------------------------------
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B. In this example, the employee in example 5A did not pay any of the deposit to obtain credit for the 3 years, 4 months, and 21 days of other service as of June 30, 1997. Thus, none of the other service is used in the computation of the Federal Benefit Payment. An individual covered by the Teachers Plan hired before 1996 retires in October 1997. At retirement, he is age 61 with 30 years and 3 days of departmental service plus 3 years, 4 months, and 21 days of other service that preceded the departmental service for which the deposit was paid in full in October 1997 (at retirement). The Federal Benefit Payment begins at retirement. It is based on only the 29 years, 8 months, and 22 days of departmental service performed as of June 30, 1997; 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate, and 19 years and 8 months of service at the 2 percent accrual rate. The total annuity is based on 33 years and 4 months of service; 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate and 23 years and 4 months of service at the 2 percent accrual rate. |
Example 5B_Teachers Optional [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 09/10/36Hire date: 10/09/67Separation date: 10/11/97 $0.00Department service: 30/00/03Other service: 03/04/21Total deposit paid after 6/30/97Sick leave:.015 service: 5.0175 service: 5.02 service: 23.333333Average salary: $45,680.80Total: $28,740.85Total/month: $2,395.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 09/10/36Hire date: 10/09/67Freeze date: 06/30/97Department service: 29/08/22Other service: noneTotal deposit paid after 6/30/97:Sick leave:.015 service: 5.0175 service: 5.02 service: 19.666667; 22 days droppedAverage salary: $45,680.80Total: $25,390.90Total/month: $2,116.00------------------------------------------------------------------------
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C. In this example, the employee in examples 5A and B began installment payments on the deposit to obtain credit for the 3 years, 4 months, and 21 days of other service as of June 30, 1997, but did not complete the deposit until October 1997 (at retirement). The other service is not used in the computation of the Federal Benefit Payment because the payment was not completed as of June 30, 1997. Thus, the result is the same as in example 5B. |
Example 5C_Teachers Optional [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 09/10/36Hire date: 10/09/67Separation date: 10/11/97Department service: 30/00/03Other service: 03/04/21Partial deposit paid as of 6/30/97:Deposit completed after 6/30/97:Sick leave:.015 service: 5.0175 service: 5.02 service: 23.333333Average salary: $45,680.80Total: $28,740.85Total/month: $2,395.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 09/10/36Hire date: 10/09/67Freeze date: 06/30/97Department service: 29/08/22Other service: nonePartial deposit paid as of 6/30/97:Deposit completed after 6/30/97:Sick leave:.015 service: 5.0175 service: 5.02 service: 19.666667; 22 days droppedAverage salary: $45,680.80Total: $25,390.90Total/month: $2,116.00------------------------------------------------------------------------
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Disability Retirement Examples Example 6: Disability Occurs Before Eligibility for Optional Retirement A. In this example, an individual covered by the Police and Firefighters Plan hired before 1980 retires based on a disability in the line of duty in October 1997. At retirement, he is age 45 with 18 years, 5 months, and 11 days of departmental service. Since he had performed less than 20 years of service and had not reached the age of eligibility for an optional retirement, the Federal Benefit Payment does not begin at retirement. When the disability annuitant reaches age 55, he satisfies the age and service requirements for deferred retirement. At that time (August 20, 2007), the Federal Benefit Payment begins. It is based on the 18 years, 1 month, and 17 days of departmental service performed as of June 30, 1997, all at the 2.5 percent accrual rate. |
Example 6A_Police Disability in Line of Duty, Age 45 [Pre-80 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 08/20/52Hire date: 05/14/79Separation date: 10/24/97Department service: 18/05/11Other service:Sick leave:.025 service: 18.416667.03 service:Average salary: $47,788.64Final salary: $50,938.00Total: $22,002.70Total/month: $1,834.00\2/3\ of average pay: $31,859.11Monthly: $2,655.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 08/20/52Hire date: 05/14/79Freeze date: 06/30/97Department service: 18/01/17Other service:Sick leave:.025 service: 18.083333.03 service:Average salary: $47,788.64Final salary: $50,938.00Total: $21,604.43Total/month: $1,800.00; deferred------------------------------------------------------------------------
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B. In this example, an individual covered by the Teachers Plan hired before 1996 retires based on a disability in December 1997. At retirement, she is age 49 with 27 years and 4 months of departmental service which includes 3 years, 3 months and 14 days of excess leave without pay (prior to June 30, 1997). Since she does not qualify for optional retirement at separation, the Federal Benefit Payment does not begin at separation. When the disability annuitant reaches age 62, she will satisfy the age and service requirements for deferred retirement. At that time (March 9, 2010), the Federal Benefit Payment begins. The time attributable to the excess leave without pay is subtracted from the service used to compute the Federal Benefit Payment. Since the excess leave without pay occurred before June 30, 1997, the deferred Federal Benefit Payment is based on the 23 years and 6 months of service; 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate, and 13 and 6 months of service at the 2 percent accrual rate. |
Example 6B_Teachers Disability Age 49 [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 03/09/48Hire date: 09/01/70Separation date: 12/31/97Department service: 27/04/00Other service:Excess LWOP: 03/03/14.015 service: 5.0175 service: 5.02 service: 14Average salary: $53,121.00Total: $23,506.04Total/month: $1,959.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 03/09/48Hire date: 09/01/70Freeze date: 06/30/97Department service: 26/10/00Other service:Excess LWOP: 03/03/14.015 service: 5.0175 service: 5.02 service: 13.5Average salary: $53,121.00Total: $22,974.83Total/month: $1,915.00; deferred------------------------------------------------------------------------
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Example 7: Disability Occurs After Eligibility for Optional Retirement A. In this example, an individual covered by the Police and Firefighters Plan hired before 1980 retires based on a disability in the line of duty in October 1997. At retirement, she is age 55 with 24 years, 5 months, and 11 days of departmental service. Since she was also eligible for optional retirement at the time of separation, the Federal Benefit Payment commences at retirement. It is based on the 24 years, 1 month, and 17 days of departmental service performed as of June 30, 1997. Thus, the Federal Benefit Payment is based on 20 years of service at the 2.5 percent accrual rate and 4 years and 1 month of service at the 3 percent accrual rate. The total annuity is based on the disability formula and is equal to two-thirds of average pay because that amount is higher than the 63.25 percent payable based on total service. |
Example 7A_Police Disability in Line of Duty Age 55 [Pre-80 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 10.01/42Hire date: 05/14/73Separation date: 10/24/97Department service: 24/05/11Other service:Sick leave:.025 service: 20.03 service: 4.416667Average salary: $47,788.64Final salary: $50,938.00Total: $30,226.31Total/month: $2,519.002/3 of average pay: $31,859.11Monthly: $2,655.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 10/01/42Hire date: 05/14/73Freeze date: 06/30/97Department service: 24/01/17Other service:Sick leave:.025 service: 20.03 service: 4.083333Average salary: $47,788.64Final salary: $50,938.00Total: $29,748.43Total/month: $2,479.00------------------------------------------------------------------------
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B. In this example, an individual covered by the Teachers Plan hired before 1996 retires based on a disability in December 1997. At retirement, he is age 60 with 27 years and 4 months of departmental service which includes 3 years, 3 months and 14 days of excess leave without pay (prior to June 30, 1997). Since he qualifies for optional retirement at separation, the Federal Benefit Payment begins at retirement. Since the excess leave without pay occurred before June 30, 1997, and the total annuity is based on actual service (that is, exceeds the guaranteed disability minimum), the time attributable to the excess leave without pay is subtracted from the service used to compute the Federal Benefit Payment and total benefit. The Federal Benefit Payment is based on 23 years and 6 months of service; 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate, and 13 years and 6 months of service at the 2 percent accrual rate. The total annuity payable is based on 24 years of service; 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate, and 14 years of service at the 2 percent accrual rate. |
Example 7B_Teachers Disability Age 60 [Pre-96 hire]------------------------------------------------------------------------ TotaL Annuity Computation-------------------------------------------------------------------------Birth date: 03/09/37Hire date: 09/01/70Separation date: 12/31/97Department service: 27/04/00Other service:Excess LWOP: 03/03/14.015 service: 5.0175 service: 5.02 service: 14Average salary: $53,121.00Total: $23,506.04Total/month: $1,959.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 03/09/37Hire date: 09/01/70Freeze date: 06/30/97Department service: 26/10/00Other service:Excess LWOP: 03/03/14.015 service: 5.0175 service: 5.02 service: 13.5Average salary: $53,121.00Total: $22,974.83Total/month: $1,915.00------------------------------------------------------------------------
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Deferred Retirement Examples Example 8: All Service Before June 30, 1997 In this example, an individual covered by the Police and Firefighters Plan hired before 1980 separated in March 1986 with title to a deferred annuity. In November 1997, he reaches age 55 and becomes eligible for the deferred annuity based on his 15 years, 9 months, and 8 days of departmental service, all at the 2.5 percent accrual rate. The total annuity is based on the same 15 years, 9 months, and 8 days of service all at the 2.5 percent accrual rate. Since all the service is creditable as of June 30, 1997, the Federal Benefit Payment equals the total annuity. |
Example 8_Police Deferred [Pre-80 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 11/20/42Hire date: 06/01/70Separation date: 03/08/86Department service: 15/09/08Other service:Sick leave:.025 service: 15.75.03 service: 0Average salary: $30,427.14Final salary: $45,415.00Total: $11,980.69Total/month: $998.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 11/20/42Hire date: 06/01/70Freeze date: 03/08/86Department service: 15/09/08Other service:Sick leave:.025 service: 15.75.03 service: 0Average salary: $30,427.14Final salary: $45,415.00Total: $11,980.69Total/month: $998.00------------------------------------------------------------------------
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Example 9: Service Straddles June 30, 1997 In this example, an individual covered by the Police and Firefighters Plan hired before 1980 separated in December 1997 with title to a deferred annuity. In November 2007, he will reach age 55 and becomes eligible to receive a deferred annuity. At that time, the Federal Benefit Payment begins. It is based on the 18 years and 1 month of departmental service performed as of June 30, 1997, all at the 2.5 percent accrual rate. The total annuity begins at the same time, based on his 18 years, 6 months, and 8 days of departmental service, all at the 2.5 percent accrual rate. |
Example 9_Police Deferred [Pre-80 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 11/20/52Hire date: 06/01/79Separation date: 12/08/97Department service: 18/06/08Other service:Sick leave:.025 service: 18.5.03 service: 0Average salary: $30,427.14Final salary: $45,415.00Total: $14,072.55Total/month: $1,173.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 11/20/52Hire date: 06/01/79Freeze date: 06/30/97Department service: 18/01/00Other service:Sick leave:.025 service: 18.083333.03 service: 0Average salary: $30,427.14Final salary: $45,415.00Total: $13,755.60Total/month: $1,146.00; deferred------------------------------------------------------------------------
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Reduction To Provide a Survivor Annuity Examples Example 10: Survivor Reduction Calculations Both of the following examples involve a former teacher who elected a reduced annuity to provide a survivor benefit: A. In this example, the employee elected full survivor benefits. The Federal Benefit Payment is reduced by 2 |
Example 10A_Teachers Optional W/Survivor Reduction [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 11/01/42Hire date: 11/01/68Separation date: 12/31/97Department service: 29/02/00Other service: 03/09/18Military: 00/09/11.015 service: 5.0175 service: 5.02 service: 23.666667Average salary: $66,785.00Total unreduced: $42,464.13Reduction: $3,976.41Total reduced: $38,487.72Total/month: $3,207.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 11/01/42Hire date: 11/01/68Freeze date: 06/30/97Department service: 28/08/00Other service: 03/09/18Military: 00/09/11.015 service: 5.0175 service: 5.02 service: 23.166667Average salary: $66,785.00Total unreducted: $41,796.28Reduction: $3,909.63Total reduced: $37,886.65Total/month: $3,157.00------------------------------------------------------------------------
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B. In this example, the employee elects to provide a partial survivor annuity based on $3600 per year. The Federal Benefit Payment is reduced by $90 per year. The total benefit is reduced by $90 per year. |
Example 10B_Teachers Optional W/Survivor Reduction [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 11/01/42Hire date: 11/01/68Separation date: 12/31/97Department service: 29/02/00Other service: 03/09/18Military: 00/09/11.015 service: 5.0175 service: 5.02 service: 23.666667Average salary: $66,785.00Total unreduced: $42,464.13Reduction: $90.00Total reduced: $42,374.13Total/month: $3,531.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 11/01/42Hire Date: 11/01/68Freeze date: 06/30/97Department service: 28/08/00Other service: 03/09/18Military: 00/09/11.015 service: 5.0175 service: 5.02 service: 23.166667Average salary: $66,785.00Total unreduced: $41,796.28Reduction: $90.00Total reduced: $41,706.28Total/month: $3,476.00------------------------------------------------------------------------
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Early Optional or Involuntary Retirement Examples Example 11: Early Optional With Age Reduction In this example, an individual covered by the Teachers Plan hired before 1996 retires voluntarily in February 1998, under a special program that allows early retirement with at least 20 years of service at age 50 older, or at least 25 years of service at any age. At retirement, she is 6 full months short of age 55. She has 25 years and 5 months of departmental service; 6 years, 2 months, and 19 days of other service (creditable before June 30, 1997); and 2 months and 9 days of unused sick leave. Since she is not eligible for optional retirement and she is eligible to retire voluntarily only because of the District-approved special program, the Federal Benefit Payment is calculated similar to a disability retirement. It does not begin until she becomes eligible for a deferred annuity at age 62. When it commences the Federal Benefit Payment will be based on the service creditable as of June 30, 1997: 30 years and 11 months of service; 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate, and 20 years and 11 months of service at the 2 percent accrual rate. The total annuity is based on 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate and 21 years and 9 months of service at the 2 percent accrual rate (including the unused sick leave). Because the Federal Benefit Payment is based on the deferred annuity, rather than the early voluntary retirement, it is not reduced by the age reduction factor used to compute the total benefit. |
Example 11_Teachers Early Out W/Age Reduction [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 09/20/43Hire date: 10/01/72Separation date: 02/28/98Department service: 25/05/00Other service: 06/02/19Sick leave: 00/02/09.015 service: 5.0175 service: 5.02 service: 21.75Average salary: $69,281.14Total unreduced: $41,395.48Age reduction factor: 0.990000Total reduced: $40,981.53Total/month: $3,415.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 09/20/43Hire date: 10/01/72Freeze date: 06/30/97Department service: 24/09/00Other service: 06/02/19.015 service: 5.0175 service: 5.02 service: 20.916667Average salary: $69,281.14Total unreduced: $40,240.80Reduction factor: 1.000000 no reductionTotal reduced: $40,240.80Total/month: $3,353.00 deferred------------------------------------------------------------------------
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Example 12: Involuntary With Age Reduction In this example, an individual covered by the Teachers Plan hired before 1996 retires involuntarily in February 1998. At retirement, she is 6 full months short of age 55. She has 25 years and 5 months of departmental service; 6 years, 2 months, and 19 days of other service (creditable before June 30, 1997); and 2 months and 9 days of unused sick leave. The Federal Benefit Payment begins at retirement. It is based on the 30 years and 11 months of service; 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate, and 20 years and 11 months of service at the 2 percent accrual rate. The total annuity is based on 5 years of service at the 1.5 percent accrual rate, 5 years of service at the 1.75 percent accrual rate and 21 years and 9 months of service at the 2 percent accrual rate (including the unused sick leave). Both the Federal Benefit Payment and the total benefit are reduced by the age reduction factor. |
Example 12_Teachers Involuntary W/Age Reduction [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 09/20/43Hire date: 10/01/72Separation date: 02/28/98Department service: 25/05/00Other service: 06/02/19Sick leave: 00/02/09.015 service: 5.0175 service: 5.02 service: 21.75Average salary: $69,281.14Total unreduced: $41,395.48Age reduction factor: 0.990000Total reduced: $40,981.53Total/month: $3,415.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 09/20/43Hire date: 10/01/72Freeze date: 06/30/97Department service: 24/09/00Other service: 06/02/19.015 service: 5.0175 service: 5.02 service: 20.916667Average salary: $69,281.14Total unreduced: $40,240.80Age reduction factor: 0.990000Total reduced: $39,838.39Total/month: $3,320.00------------------------------------------------------------------------
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Death Benefits Example Example 13: Death Benefits Calculation Regardless of whether death occurs in service or after retirement, if the death benefit is not based on the length of service, the portion of a death benefit that is a Federal Benefit Payment is based on the ratio of the number of months of the deceased employee's service as of June 30, 1997, to the number of months of the deceased employee's total service. This proration will always apply to cases of death after retirement in which the survivor annuity is based on the reduction in the employee's annuity to provide the benefit. It also applies to lump-sum benefits and benefits computed under a guaranteed-minimum or a percentage-of-disability-at-retirement formula. A. In this example, an individual covered by the Teachers Plan retires in April 1998 with 30 years of service and elects to provide a full survivor annuity. He dies in June 1998. The Federal Benefit Payment is 97 |
Example 13A_Teachers Death Benefits [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 04/01/46Hire date: 04/01/68Separation date: 04/01/98Death date: 06/24/98Department service: 30/00/00Other service:Sick leave:Months: 360Annual Benefit: $12,000.00Monthly Benefit: $1,000.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 04/01/46Hire date: 04/01/68Freeze date: 06/30/97Death date: 06/24/98Department service: 29/03/00Other service:Months: 351 $11,700.00 $975.00------------------------------------------------------------------------
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B. In this example, a teacher dies in service on June 30, 1998 after 31 years of departmental service. Since the survivor annuity is based on actual service, the Federal Benefit Payment is based on the 30 years of service as of June 30, 1997. The total benefit is based on the 31 years of total service. No proration is appropriate. |
Example 13B_Teachers Death Benefits [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 07/01/39Hire date: 07/01/67Separation date: 06/30/98Death date: 06/30/98Department service: 31/00/00Other service:Sick leave:Average salary: $38,787.88Annual Benefit: $12,426.67Monthly Benefit: $1,036.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 07/01/39Hire date: 07/01/67Freeze date: 06/30/97Death date: 06/30/98Department service: 30/00/00Other service:Average salary: $38,787.88 $12,000.00 $1,000.00------------------------------------------------------------------------
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C. In this example, a teacher dies in service on April 1, 1998 after 15 years of departmental service. Since the survivor annuity is based on the guaranteed minimum, the Federal Benefit Payment is a prorated portion of the total benefit. Since the teacher had 171 months of service as of the freeze date and 180 months of service at death, the Federal Benefit Payment equals 171/180ths of the total benefit. |
Example 13C_Teachers Death Benefits [pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 04/01/61Hire date: 04/01/83Separation date: 04/01/98Death date: 04/01/98Department service: 15/00/01Average salary: $36,000.00Months: 180Annual Benefit: $7,920.00Monthly Benefit: $660.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 04/01/61Hire date: 04/01/83Freeze date: 06/30/97Death date: 04/01/98Department Service: 14/03/00Average salary: $36,000.00Months: 171Ratio (171/180): 0.950000 $7,524.00 $627.00------------------------------------------------------------------------
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D. In this example, as in the prior example, a teacher dies in service on April 1, 1998 after 15 years of departmental service. However, in this example, the teacher was age 40 on the hire date. The amount of service used in the survivor annuity calculation equals the amount of service that the teacher would have had if the teacher continued covered employment until age 60. Since the survivor annuity is based on projected service, a form of the guaranteed minimum, the Federal Benefit Payment is a prorated portion of the total benefit. Since the teacher had 171 months of service as of the freeze date and 180 months of service at death, the Federal Benefit Payment equals 171/180ths of the total benefit. |
Example 13D_Teachers Death Benefits [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 04/01/43Hire date: 04/01/83Separation date: 04/01/98Death date: 04/01/98Department service: 15/00/01Departmental Service projected to age 60: 20/00/01.015 service: 5.0175 service: 5.02 service: 10Average salary: $36,000.00Months: 180Annual Benefit: $7,177.50Monthly Benefit: $598.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 04/01/43Hire date: 04/01/83Freeze date: 06/30/97Death date: 04/01/98Department service: 14/03/00Average salary: $36,000.00Months: 171Ratio (171/180): 0.950000 $6,818.63 $568.00------------------------------------------------------------------------
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Cost of Living Adjustment Examples Example 14: Application of Cost of Living Adjustments Cost of living adjustments are applied directly to the Federal Benefit Payment to determine the new rate of the Federal Benefit Payment after a cost of living adjustment. A. In this example, the cost of living adjustment is the same for the Federal Benefit Payment and the non-Federal Benefit Payment portion of the total benefit. Effectively, the total cost of living adjustment is proportionally split between the Federal Benefit Payment and the non-Federal Benefit Payment. |
Example 14A_Teachers Cost of Living Adjustment [Pre-96 hire]------------------------------------------------------------------------ Benefit Computation (at retirement)------------------------------------------------------------------------- Total Annuity Computation------------------------------------------------------------------------ Birth date: 11/04/48 Hire date: 03/01/86 Separation date: 02/28/2013 Department service: 27/00/00 Other service paid in 1995: 06/07/28 Excess LWOP in 1990: 00/03/18 .015 service: 5 .0175 service: 5 .02 service: 23.333333 Average salary: $53,121.00 Total: $33,421.98 Total/month: $2,785.00------------------------------------------------------------------------ Benefit Computation (at retirement)------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------ Birth date: 11/04/48 Hire date: 03/01/86 Freeze date: 06/30/1997 Department service: 11/04/00 Other service paid in 1995: 06/07/28 Excess LWOP in 1990: 00/03/18 .015 service: 5 .0175 service: 5 .02 service: 7.666667 Average salary: $53,121.00 Total: $16,777.38 Total/month: $1,398.00------------------------------------------------------------------------ COLA Computation------------------------------------------------------------------------DC COLA rate 4%Total COLA: 111New rate: 2896Federal COLA rate 4% Federal COLA: 56 New rate: 1454------------------------------------------------------------------------
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B. In this example, a new District plan applies a different cost of living adjustment than is provided for the Federal Benefit Payment. The Federal Benefit Payment will be unaffected by the new District plan. In such a case, the total cost of living adjustment is no longer proportionally split between the Federal Benefit Payment and the non-Federal Benefit Payment. |
Example 14B_Teachers Cost of Living Adjustment [Pre-96 hire]------------------------------------------------------------------------ Benefit Computation (at retirement)------------------------------------------------------------------------- Total Annuity Computation------------------------------------------------------------------------ Birth date: 11/04/48 Hire date: 03/01/86 Separation date: 02/28/2013 Department service: 27/00/00 Other service paid in 1995: 06/07/28 Excess LWOP in 1990: 00/03/18 .015 service: 5 .0175 service: 5 .02 service: 23.333333 Average salary: $53,121.00 Total: $33,421.96 Total/month: $2,785.00------------------------------------------------------------------------ Benefit Computation (at retirement)------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------ Birth date: 11/04/48 Hire date: 03/01/86 Freeze date: 06/30/1997 Department service: 11/04/00 Other service paid in 1995: 06/07/28 Excess LWOP in 1990: 00/03/18 .015 service: 5 .0175 service: 5 .02 service: 7.666667 Average salary: $53,121.00 Total: $16,777.38 Total/month: $1,398.00------------------------------------------------------------------------ COLA Computation Variations Variation 1------------------------------------------------------------------------DC COLA rate 5% of total benefit:Total COLA: $139.00New rate: $2,924.00Federal COLA rate 4% of FederalBenefit Payment:Federal COLA: $56.00 New rate: $1,454.00------------------------------------------------------------------------ Variation 2------------------------------------------------------------------------DC COLA rate 5% of DC Payment: Total COLA: $125.00 New rate: $2,910.00Federal COLA rate 4% of Federal Benefit Payment: Federal COLA: $56.00 New rate: $1,454.00------------------------------------------------------------------------
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Retroactive Payment of Accrued Annuity Example Example 15: Accrual of Federal Benefit Payment The Federal Benefit Payment begins to accrue on the annuity commencing date, regardless of whether the employee is added to the annuity roll in time for the regular payment cycle. If the employee is due a retroactive payment of accrued annuity, the portion of the retroactive payment that would have been Federal Benefit Payment (if it were made in the regular payment cycle) is still Federal Benefit Payment. In this example, a teacher retired effective September 11, 1998. She was added to the retirement rolls on the pay date November 1, 1998 (October 1 to October 31 accrual cycle). Her Federal Benefit Payment is $3000 per month and her total benefit payment is $3120 per month. Her initial check is $5200 because it includes a prorated payment for 20 days (September 11 to September 30). The Federal Benefit Payment is $5000 of the initial check ($3000 for the October cycle and $2000 for the September cycle). |
Example 15_Teachers Accrued Benefit [Pre-96 hire]------------------------------------------------------------------------ Total Annuity Computation-------------------------------------------------------------------------Birth date: 11/01/42Hire date: 09/01/66Separation date: 09/10/98Department service: 32/00/10.015 service: 5.0175 service: 5.02 service: 22Average salary: $62,150.00Total: $37,445.38Total/month: $3,120.00Sept 11-30: $2,080.00Oct 1-31: $3,120.00Nov 1-30: $3,120.00------------------------------------------------------------------------ Federal Benefit Payment Computation------------------------------------------------------------------------Birth date: 11/01/42Hire date: 09/01/66Freeze date: 06/30/97Department service: 30/10/00.15 service: 5.0175 service: 5.02 service: 20.833333Average salary: $62,150.00Total: $35,995.21Total/month: $3,000.00Sept 11-30: $2,000.00Oct 1-31: $3,000.00Nov 1-30: $3,000.00------------------------------------------------------------------------
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