| Employee 1 | Employee 2 | Employee 3 | |
|---|---|---|---|
Age at hire |
25 | 35 | 50 |
Age at separation |
40 | 65 | 65 |
Total years of service |
15 | 30 | 15 |
| Credits per year: | |||
Age 30 and younger (2.5 percent) |
5 @ 2.5 = 12.5 | 0 | 0 |
Age 31-35 (3.0 percent) |
5 @ 3.0 = 15.0 | 0 | 0 |
Age 36-40 (4.0 percent) |
5 @ 4.0 = 20.0 | 5 @ 4.0 = 20.0 | 0 |
Age 41-45 (5.0 percent) |
0 | 5 @ 5.0 = 25.0 | 0 |
Age 46-50 (6.5 percent) |
0 | 5 @ 6.5 = 32.5 | 0 |
Age 51-55 (8.0 percent) |
0 | 5 @ 8.0 = 40.0 | 5 @ 8.0 = 40.0 |
Age 56-60 (10.5 percent) |
0 | 5 @ 10.5 = 52.5 | 5 @ 10.5 = 52.5 |
Age 61 and older (13.5 percent) |
0 | 5 @ 13.5 = 67.5 | 5 @ 13.5 = 67.5 |
Total credits (percent) |
47.5 | 237.5 | 160.0 |
Final average earnings (1) |
40,000 | $40,000 | $40,000 |
Lump-sum benefit |
$19,000 | $95,000 | $64,000 |
|
Footnotes: |
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