The gross monthly benefit at retirement for all scenarios is $7,000.
| Retirement Date |
Return to Work Date |
Postretirement Earnings |
Excess Earnings |
Excess Earnings Effect on Monthly Benefit |
| Scenario 1 |
June 30, 2008
at age 65 |
Sept 1, 2009
(14-month break in service) |
Total earnings:
$36,000 by
March 2010 |
Above earnings limit:
$4,980 |
None.
12 or more month break in service qualifies for an exemption.
|
| Scenario 2 |
June 30, 2010
at age 65 |
Sept 1, 2010
(2-month break in service) |
District 1: $20,000
District 2: $20,000
Total earnings:
$40,000 by
March 2011 |
Above earnings limit:
$8,980 |
Monthly benefit reduced dollar-for-dollar by the amount of excess earnings up to 100% of monthly benefit.
Deduction first month = $7,000 (Retiree receives no benefit)
Deduction second month = $1,980 (Retiree receives a benefit of $5,020)
Not exempt: No 12-month break or other exemption.
|
| Scenario 3 |
June 30, 2010
at age 59
and 4 months |
July 1, 2010
(no break in service) |
Total earnings:
$32,400 by
June 30, 2011
$2,700 earned per month for
12 months |
Above earnings limit:
$1,380
For first six months after retirement:
$16,200
($2,700 x 6 = $16,200)
Total excess earnings:
$17,580
If there is no separation from service, compensation earned applies to the earnings limit. |
Monthly benefit reduced dollar-for-dollar by the amount of excess earnings up to 100% of monthly benefit.
Deduction first month = $7,000 (Retiree receives no benefit)
Deduction second month = $7,000 (Retiree receives no benefit)
Deduction third month = $3,580 (Retiree receives a benefit of $3,420)
Not exempt: Retired before age 60, returned to work within six months after retirement and did not qualify for an exemption after the six months elapsed.
|
