a. Calculation of a SLEP pension
A SLEP plan pension is based on the member’s length of SLEP service and final rate of earnings. The final rate of earnings is the highest total earnings during any 48 consecutive months within the last 10 years of service divided by 48.
Those 48 months can include the month after the member’s last day of work, if the member receives his or her final paycheck in that month. In that case, the member could still receive a SLEP pension for that month.
The earnings considered in this calculation for each of the last three months of the 48-month interval are limited to 125 percent of the highest earnings in any single month of the first 45 months.
b. SLEP pension calculation illustration
The formula for computing a SLEP monthly pension is 2.50% of the final rate of earnings for each year of SLEP service credit.
Example:
A member who retires at age 50 with 27 years of service and average monthly earnings of $5,000 will receive a pension of $3,375 a month. The pension calculation is as follows:
|
27 years of service: |
2.5% |
x |
27 |
= |
67.5% |
x |
$5,000 |
= |
$3,375 |
Total monthly pension $3,375
If a member with 20 or more years of SLEP service has other periods of non-SLEP service under IMRF, the member will receive a pension under the SLEP formula plus a pension under the Regular plan formula for the non-SLEP service.