How will a Normal Retirement Benefit accrue under the Schedules?
If a participant is working under the Alternative Schedule the formula takes into account the hours worked in Covered Employment (Contribution Hours) and the applicable percentage(s) of the total Employer contributions made on your behalf. Under the current Alternative Schedule, a Participant’s benefit factor is 1.5% of contributions made on his/her behalf up to 1,200 hours, plus .7% on contributions due on hours worked over 1,200. If a portion of the Contribution Rate includes a 55/30 Rate, this amount is reduced by 30% to eliminate age reductions at early retirement. If a participant is working under the Default Schedule the benefit formula takes into account the hours worked in Covered Employment (Contribution Hours) and the Contribution Rate remitted on your behalf. Under the current Default Schedule, a Participant’s benefit factor is 1% of contributions made on his/her behalf.
