What you should know about your pension benefits in a nutshell

Vesting is the nonforfeitable right to receive pension benefits you have earned. You are vested when you have 5 years of service from date of hire to date of termination (can be part-time or full-time or combination of both).
Personal unpaid leaves are excluded from service time. If you left the MN and then were rehired (within 5 years of original termination date), all periods of employment count toward the 5 years.       
See also Pension calculation

Plan Benefits

The pension plan has two benefits -- Part A and Part B. You receive *both* (plus medical coverage if you are at least 55 when you retire from the MN -- see below).

• Part A
  Lump sum payment payable at termination -- commonly called "severance" but this is a pension payment. You receive 1 week�s pay for every 6 months of service (or any partial 6-month period) at your highest weekly salary (during the last 260 weeks immediately preceding your termination).
  Weekly rate of pay includes base salary, overscale (merit), job differential and shift differential. It excludes overtime pay and commissions. Maximum number of weeks payable is 60.
  Lump sum is pro-rated for part-time employees. This payment may be rolled into a tax-deferred retirement investment.

• Part B
  Monthly benefit amount paid as early as age 55 or earlier if you have an approved permanent disability. There are two components to Part B:

  1. Base amount
     To calculate this monthly benefit, take your career earnings at the MN (not to exceed 25 years) and multiply these career earnings by an age factor related to the age at which you wish to begin the pension. For example, the age factor for age 55 is .015329; age 65 factor is .032137. Then take this amount and divide it by 12 months to get your monthly base life benefit. Maximum base amount is $1,000 per month currently.
     PLUS

  2. Add-on amount
     You receive $8.25 for every year of service (pro-rata for part-time); partial years are pro-rated. There is no maximum number of years of service for this add-on amount.

     Example of Part B Pension Benefit: John is retiring at age 55 with 20 years of service and career earnings of $700,000.
      
     $700,000 x .015329 divided by 12 = $894.19 base amount
     PLUS $8.25 add-on x 20 years = $165 for
     TOTAL monthly benefit of $1,059.19 (life only benefit).

     There are three monthly options for Part B retirement -- life only, 100% joint and survivor, and 50% joint and survivor. Life is the highest value because there is no beneficiary, with the 100% and 50% joint and survivor options giving a lower pension, (but can be only somewhat lower in some cases depending on lifetime earnings and age of beneficiary).

Medical Insurance Benefit
If you are at least 55 (or have been approved for a permanent disability pension) when you leave the MN and begin your Part B monthly pension benefit immediately, your medical insurance for yourself and your eligible dependents (on your plan at the time you retire from the MN), will continue until you are age 65 if you pay 100% of the medical premium.

You *cannot*, however, leave the MN at an age younger than 55, then begin your pension at age 55, and then receive this health insurance benefit. You must be at least age 55 and begin receiving your Part B pension benefit when you leave the MN to be eligible for this pension medical insurance benefit.

Dental and vision insurance are *not* covered by this pension medical benefit; it is for medical insurance only.

This is only a brief summary of the Guild pension plan and its benefits; if you have further questions about the pension plan please call Suzanne Arnaud at the Guild office, 408-436-0761 or email her at suzanne@sjguild.org