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EXAMPLE

In this example, the following assumptions are used:

  • the employee's standard work hours were 75 hours (1,950 hours annually)

  • the employee worked full-time

  • the back of the employee's 2013 pension statement shows the salary detail for the "highest 3-year" average salary as follows (view sample statement):

 2011  2012  2013
 $42,000  $43,000  $44,000

 

  1. Calculate the employee's start-of-year annualized earnings for 2011.

  Base hourly rate of pay for January     
per collective agreement
X
1,950 = Start-of-year annualized
pensionable earnings
         
$21.40 X 1,950 = $41,730
         


  1. Calculate the employee's end-of-year annualized earnings for 2011.

Base hourly rate of pay for December
per collective agreement
X 1,950 =
End-of-year annualized
pensionable earnings
         
 $21.66 X 1,950 = $42,237
         


  1. Compare the results from steps 1 ($41,730) and 2 ($42,237) with the earnings shown on the back of your 2013 pension statement.  The annual salary shown for the employee's 2011 earnings should fall somewhere between the two results above.  As the 2013 pension statement shows $42,000 in pensionable earnings for 2011, it appears that the reported earnings for 2011 are reasonable.


DON'T FORGET


REPEAT THE ABOVE STEPS FOR EACH OF THE THREE YEARS ON THE BACK OF YOUR 2013 PENSION STATEMENT.
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