Tier 1 Annual Pension Increases
Your pension is increased by 3% of your original pension amount on January 1 of each year. You can find the amount of your increase on your Certificate of Benefits or in your Annual Statement of Benefits that you receive every November.
Your annual increase amount does not change. The amount is always 3% of your original pension amount, not 3% of your current pension payment. For example:
|$500.00 monthly pension effective January 1, 2015|
|Monthly amount in 2015||$500.00|
|Annual increase amount is calculated (3% of original pension amount)
||$500.00 x 3% = $15.00
|Every future annual increase will be $15.00|
First Year Increase
If you retire after January 1, your first year’s increase will be less because it will be based on the number of months you were retired your first year.
First Year Increase Example
This example uses a pension of $800.00 per month with an effective date of July 1, 2014.
The full 3% annual increase for this pension is $24.00 ($800.00 x 3% = $24).
Since this member only received six months of pension payments in 2014 (July through December) and not twelve months of payments, the first annual increase is half of the full increase amount:
- Annual increase on January 1, 2015 is $12.00
For every year after the first year’s increase, the member will receive the full annual increase amount:
- Annual increase on January 1, 2016 and every year after is $24.00