Common use of Calculation of Percentage to be Applied to Years of Service Clause in Contracts

Calculation of Percentage to be Applied to Years of Service. Each year of Past Service is credited at 1% (or ½% per Stabilization Period). Future Service is credited at 4% per year (or 2% per Stabilization Period). The percentage used to calculate your benefit can be a maximum of 150% (37.5 x 4 = 150). Effective with years of Future Service Credit earned starting with Stabilization Period 2018-A the multiplier will be increased from 4% to 4.5%. This is a prospective change that does not impact the multiplier used for prior years of Future Service Credit, does not change the multiplier for years of Past Service Credit, and does not change the maximum percentage of 150%.

Calculation of Percentage to be Applied to Years of Service. Each year of Past Service is credited at 1% (or ½% per Stabilization Period). For years prior to 2018, Future Service is credited at 4% per year (or 2% per Stabilization Period). The percentage used to calculate your benefit can be a maximum of 150% (37.5 x 4 = 150). Effective with years of Future Service Credit earned starting with Stabilization Period 2018-A the multiplier will be is increased from 4% to 4.5%% (2.25% per Stabilization Period). This is a prospective change that does not impact the multiplier used for prior years of Future Service Credit, does not change Credit or the multiplier for years of Past Service Credit, and does . The percentage used to calculate your benefit cannot change the maximum percentage of exceed 150%.