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Pension plans require your employer to contribute money to your plan as you work. Once you retire, you earn the accrued pension money divided into monthly checks. In most cases, a formula determines the amount you receive. Some of the formula variables include your age, compensation and years of service to the company.
Multipliers are sometimes known by other terms, such as ?accrual rate? or ?crediting rate? but they mean the same thing. A typical multiplier is 2%. So, if you work 30 years, and your final average salary is $75,000, then your pension would be 30 x 2% x $75,000 = $45,000 a year.
Total - 75% of final average monthly compensation plus 10% for each dependent not to exceed 25% for all dependents. Partial - calculated the same as a Service Pension subject to minimum 50% of final average monthly compensation.
Newly hired teachers contribute 5% out of each of their paychecks to the pension fund. The average retirement benefit is $20,070 per year, or $1,673 per month. The Delaware pension replaces 55.5% of pre-retirement income for a newly hired teacher with 30 years of service.
Fifteen (15) years of credited service (must have five (5) consecutive years of credited service) and has attained age 60; Thirty (30) years of credited service (must have five (5) consecutive years of credited service) regardless of age.
As a member of the State Employee Pension Plan (SEPP), you earn creditable service time towards your retirement benefit each day on the job. Creditable service is used to determine your eligibility for retirement, monthly pension amount, and cost of health insurance.