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Association of Classified Employees TO: All
Local 2250 Members FROM: DATE: May
30, 2006 SUBJECT: New
Pension Legislation The new pension system legislation provides an improvement
in the pension system multiplier from the current 1.4% to 1.8% for pension
system participants. The 1.8% is
retroactive to July 1st, 1998 forward and will affect all plan
participants from that date. The bill
also increases the employee contribution from its current rate of 2% of
salary to 5% of salary. This increase
will be phased in at a rate of one (1%) additional percent per year for the
next three (3) years. Plan participants
retirement income will differ depending on your date of hire, years of
service, and the last three years of service. Employees who began employment on July 1, 1998, or later
will see their benefit calculated at 54% of their final 3 year salary. Employees who began their employment prior
to July 1, 1998 should calculate their benefit at 1.2% of salary up to July
1, 1998, when the calculator changes to 1.8% of salary. The Pension Legislation also requires that the local
employer ( The new Pension Plan is complicated because of the two
different multipliers of 1.2% vs. 1.8%.
We have attempted to provide you with several examples below in
an effort to explain how your final retirement calculation is reached. Please
understand they are for illustration purposes only and do not reflect any
person’s pension benefit. Examples Illustration Purpose Only Salary Table 400 –
June 30, 2006 Food Service Assistant began work as a 5 hour employee on
July 1, 1998, retires in 2018 with 30 years of service. Final annual salary at current hourly rate
=$16,625.00 a year. Annual Pension at
new pension rate of 54% of final 3 years salary = $8,978.00 Food Service Assistant retiring in 2018 without new
improvement, retirement annual final salary $16,625.00 a year. Annual pension at old pension rate of 42%
of final 3 years salary = $6,983.00 Salary Table 100 –
June 30, 2006 Paraprofessional Educator with 90 hours college began work
July 1, 1998, retires in 2018 with 30 years of service. Final annual salary at current hourly rate
= $36,389.00 a year. Annual Pension at
new pension rate of 54% of final 3 years salary = $19,650.00 Paraprofessional Educator retiring in 2018 without new
improvement, retirement annual final salary $36,389.00 a year. Annual Pension at old pension rate of 42%
of final 3 years salary = $15,283.38 Salary Table 500 –
June 30, 2006 Bus Driver began work July 1, 1998 retires in 2018 with 30
years of service. Final annual salary
at current hourly rate at 8 hours per day = $39,546.00. Annual pension at new pension rate of 54%
of final 3 year salary = $21,355.00 Bus Driver retiring in 2018 without new improvement,
retirement annual final salary, $39,546.00 a year. Annual pension at old pension rate of 42%
of final 3 years salary = $16,610.00 Salary Table 200 –
Maintenance/Central Garage Salary – June 30, 2006 Automotive Mechanic I began work July 1, 1998, retires in 2018
with 30 years of service. Final annual
salary at current hourly rate at 8 hours per day = $62,026.00. Annual Pension at new pension rate of 54%
of final 3 year salary = $33,494.00. Automotive Mechanic I retiring in 2018 without new
improvement, retirement annual final salary, $62,026.00 a year. Annual Pension at old pension rate of 42%
of final 3 years salary = $26,051.00. Salary Table 700 –
School Secretary II – June 30, 2006 School Secretary II began work July 1, 1998, retires in
2018 with 30 years of service. Final
annual salary at current hourly rate at 8 hours per day = $55,099.00. Annual Pension at new pension rate of 54%
of final 3 year salary = $29, 753.00. School
Secretary II retiring in 2018 without new improvement, retirement annual
final salary $55,099.00 a year. Annual
Pension at old pension rate of 42% of final years salary = $23,142.00 Once again these examples are provided to demonstrate the
difference or improvement over the current pension system and do not
reflect any particular members pension benefit. Local 2250 strongly suggests that
members contact the retirement counselors at the State Retirement Agency for any
questions relative to an individual’s retirement benefit. 2250 Reaches Settlement on Itemization GrievanceLocal 2250 reached an agreement with the Board of
Education resolving a grievance that had been pending for some time. The settlement provides that no later than June 9th,
the Board will provide to each bus driver and bus attendant, a printout
providing the detailed itemized pay information for each pay period from
April 7th, 2003 to May 26, 2006. This information itemizes “what the driver or attendant is being paid for and the hourly rate of pay” on a day-by-day basis. In addition, the Board will implement a procedure, effective by the pay date of June 16, 2006, and continuing thereafter, that each bus driver and each attendant will receive, with his/her paycheck or direct-deposit pay statement, the detailed information which itemizes “what the driver or attendant is being paid for and the hourly rate” on a day-by-day basis. In the event the Board fails to implement this Agreement,
the arbitration hearing will be reinstated, at a date to be mutually determined, by
the Arbitrator and the Parties. Local 2250 Web Site Now
Available: www.ace-afscme.org Have a question about your union contract? Pull up that link on the web site and the
latest information is there. There is
a lot of information available to you on the web site that might just be
worth checking out. Should you have
any questions, comments, suggestions relation to the website, please e-mail
us. We look forward to hearing from
you. Remember the Sick Leave Bank Open EnrollmentSick
Leave Bank enrollment is open beginning July 1st, 2006 through September
30th, 2006. Donation
forms should be available at your work location or, if not, you may call the
Union office and ask for Terry at 301-773-7223. Early NoticeThe
annual Local 2250 Family Picnic is scheduled for Saturday, September 23rd,
2006 from 12:00 p.m. to 5:00 p.m. It’s a
great time, so hold this date open! Faith Jones, President Richard
Putney, Executive Director |
