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Tier
2 Benefit Calculator Help |
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Calculating your estimated Tier 2 retirement
benefit takes a little more patience and requires a bit more information
than other tiers. Below are some hints to make the task easier. Remember,
future service in Tier 2 was eliminated for all but a few employee groups
(for example: CNA's and Contra Costa Mosquito and Vector Control District)
as of October 1, 2002. Most CCCERA general members will have service time
in Tier 2 and Tier 3, unless they choose to convert their Tier 2
time to Tier 3 time. If you have retirement service credit in more than
one tier, be sure to make one calculation for your Tier 2 time, and one
calculation for your other tier service. Then add those final amounts together. |
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Calculating
your Tier 2 Final Average Salary |
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Your retirement benefit is based on three
main factors: |
- Average Monthly Salary
- Years of Retirement Service Credit
- Retirement Age Factor
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Average Monthly Salary: |
For Tier 2 members, your
final average salary is computed by taking your last
36 months
of employment, or your highest consecutive
36 months of pay. This amounts to 3 years of annual
salary added together. Note: as you follow the formula
for computing your estimated benefit, this amount will be converted back
into your highest monthly average salary. |
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Retirement Service Credit: |
The length of time you contributed
to the retirement system, including any eligible time you may have
purchased. For example, if you were on an unpaid leave of absence, no pay
was generated. Therefore, no contributions were taken from your pay check,
and no retirement service credit was
accrued. Note: retirement system contributions begin the month
following your hire date, so retirement service credit begins
accumulating the first day of the month after
you begin working in an eligible position. |
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Retirement Age Factor: |
The percentage (expressed in decimal
form) mandated by the '37 Act statute and adopted by your employer, that
is multiplied by your retirement age and years of service to calculate your
benefit. |
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Vacation, Personal Holiday
Accruals: |
Find these hourly, accrued (saved,
or not yet used) amounts on your pay check stub under "Accrual Description."
The "Balance at End of PP" (Pay Period) are the hours that may
be available to turn into retirement service credit. Note: there
is a limit to the number of hours you can use for this purpose, depending
on your tier. |
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Calculating
Your Social Security Offset |
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While you accrue Tier 2 retirement service credit
(by payroll contribution), most employees are also paying into the Federal
Social Security Administration (SSA) pension plan. This deduction will be
listed under the category FED OASDI/EE on your pay check stub. If you have
paid into both pension plans, by law, you must take a "Social Security
Offset," or reduction, in the pension benefit you receive from your
employer. |
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1. Get your estimated Social Security
pension benefit amount. |
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There are a couple of ways to do this. The
Social Security Administration (SSA) sends out an annual statement detailing
wages for the years you've worked, plus estimated benefits for your retirement
age. If you've kept this information, you're ready to calculate the offset.
OR. . .
Go to the SSA website (there's a link to this site on our
CCCERA links page). The SSA site is very comprehensive. You can find several
different calculators in which to put your estimated retirement dates,
years of service and wages to estimate a "ballpark" figure for
your SSA pension amount. Go to our Links Page and click on Social Security
Administation. Once you're there, click on Search in the SSA banner. Type
"calculator" in the search box. Then choose the calculator of
your choice. |
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2. Multiply your Tier 2 years of service
by the monthly SSA pension amount. |
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Example: If you're planning
on working for your employer for 25 years, multiply 25 years X
your monthly estimated SSA pension (i.e.,$1,000) = $25,000. |
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3. Find the Social Security Offset Factor
for your age on the Tier 2 Estimate brochure table. |
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4. Multiply the SSA Factor by the previous
amount (for example, $25,000). |
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$25,000 X .01667 (the factor for age 62) =
$416.75 |
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5. In this example, $416.75
is the SSA Offset figure to be subtracted from the CCCERA pension.
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