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Breakpoint Updated For 2017

The Tier2/2A/3 pension breakpoint has been updated for 2017, the breakpoint is now $77,889.

To the advantage of members, the breakpoint has increased by roughly 3.6% for the past 3 years.  This is a huge improvement compared with the first 30 years in which the breakpoint rose by 6% per year.

Tier2/2A/3 has a multiplier of 1.4% times years of service times salary and an increase of .4333% times years of service for salary above the breakpoint.

This means that your pension will be roughly calculated as such:

.014 x YrsOfService x AvgSalary
                        +
.004333 x YrsOfService x AvgSalaryAboveTheBreakpoint

(for the first 35 years of service...1.625% for service years beyond 35)

 

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