The accrual rate is the rate at which you earn your pension. In 2023, you will earn your pension at the rate of 1.85% of your pensionable earnings.
You earn a piece of pension every year that you work and contribute to the plan―like building blocks.
For example, let’s assume that a member’s pensionable earnings stayed constant at $60,000 every year (for easy figuring). From 2019 to 2024, that member would earn:
|Year||Accrual Rate||Formula||Pension Credit Earned|
|2019||1.4%||1.4% of $60,000||$ 840|
|2020||1.85%||1.85% of $60,000||$ 1,110|
|2021||1.625%||1.625% of $60,000||$ 975|
|2022||1.85%||1.85% of $60,000||$ 1,110|
|2023||1.85%||1.85% of $60,000||$ 1,110|
|2024||1.4%||1.4% of $60,000||$ 840|
At the end of your career, the annual pension amounts earned each year (pension credits) will add up to the total annual pension you will receive every year for the rest of your life. So, the higher amount earned in 2023 will continue to benefit you for the rest of your retired life.
There is no automatic indexing or increases in our pension plan. Each year, the Pension Board and Pension Plan Advisory Committee assess the resources available and determine whether there are surplus funds that can be used to increase benefits.