CCCERA Benefit Calculation Examples

$6,000 x 12 months = Annual Final Average Salary (FAS): $72,000
12 accrued vacation days x 10 hours = 120 hours of vacation
120 vacation hours x hourly salary ($37.50 hourly) = $4,500
$72,000 + $4,500 = $76,500 Annual Final Average Salary
$76,500 ÷ 12 = $6,375 Average Monthly Salary
$6,375 x 30 years of service x 0.020000 (retirement age factor from table) = $3,825 monthly pension benefit

	Benefit Calculation Examples
	Tier 1 or 3 Enhanced: 2% at 55 (Section 31676.11 of the '37 Act)
	Don Trump is planning to retire in two years. He started working when he was 25 years old. He remained in the Tier 1 benefit structure his entire career. He is now 53 years of age, with 28 years of verified retirement service credit. He is going to take advantage of the enhanced benefit formula, 2% at 55. In two years, he'll have 30 years of retirement service credit. He estimates his final average salary will be $6,000 monthly when he retires. He is planning on "saving" his final year of vacation days* (accruals) to add to his retirement benefit. Here's his calculation:
	$6,000 x 12 months = Annual Final Average Salary (FAS): $72,000 12 accrued vacation days x 10 hours = 120 hours of vacation 120 vacation hours x hourly salary ($37.50 hourly) = $4,500 $72,000 + $4,500 = $76,500 Annual Final Average Salary $76,500 ÷ 12 = $6,375 Average Monthly Salary $6,375 x 30 years of service x 0.020000 (retirement age factor from table) = $3,825 monthly pension benefit
		Don also paid into Social Security, so he must take a small reduction in benefit due to receiving a pension from both his employer and the SSA. The estimate brochure tables include the Social Security Offset factor. Don finds the factor for his age at retirement (55). He multiplies .023332 x 30 (his years of service) = $69.99. His final estimated monthly pension is: $3,825 - $69.99 = $3755.01
		PLEASE NOTE: As of January 1, 2011, in general, NEW members entering the system with a membership date of January 1, 2011 and beyond, will NOT be able to add accrued vacation, personal holiday, holiday comp, sabbatical, sick or administrative leave, (depending on Union MOU agreements) into their retirement benefit. This policy change was adopted by the Retirement Board in March 2010, and reflects Sections 31450, et seq., of the County Employees Retirement Law of 1937. Accrued, unused, vacation can still be converted to cash and paid as "terminal pay;" however, these dollars will not be figured into the Final Average Salary for retirement calculation. Members who have the capacity to "sell back" accrued vacation or other leave categories (depending on MOU agreements), may still receive credit for these sales. However, these sales will only be counted within a 12 month period in which the accrued time was both earned and cashable during service. Other incentives, bonuses, and payments that are not received in cash during service, but only upon termination or retirement, will not be included in Final Average Salary Calculations. The Retirement Board Policy and Addendum are posted on this website on the Retirement Board Page.