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Tier II Calculation
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Tier II Calculation - Slide 21

Tier II Calculation

Text Version:

Tier II Calculation

  • Paid in addition to tier I benefit and based solely on railroad work
  • Based on:
    • 60 months of highest earnings
      (up to tier II maximum)
      and
    • Total years of railroad service

Notes:

  • Tier II
    • computed under a separate formula
    • comparable to an industrial pension
    • reduced for age if required
    • reduced by 25% of employee vested dual benefit amount
       
  • Maximum tier II creditable compensation:
    • 2005 - $66,900
    • 2006 - $69,900
    • 2007 - $72,600
    • 2008 - $75,900
    • 2009 - $79,200

This provides average monthly compensation (AMC) of $6,075.


 


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Date posted: 08/20/2008
Date updated: 02/25/2009