Can I see an example of the calculation?

Let’s assume an employee was hired on April 15, 1979 and retired on February 1, 2006 at 62 years of age. The average of the highest 4 years of earnings in the 10 year period 1996-2005 was $50,000. The calculation is as follows:

Average of highest 4 years of earnings	X	Amount of pension service	X	Multiply	=	Annual pension amount
$50,000	X	26.75	X	.0215	=	$28,756.25

(Note that the employee received service credit for 8 full months in 1979 (May-December), 1 month (January) in 2006 along with the 26 calendar years from 1980 through 2005 for pension service of 26 years 9 months or 26.75 years.)