Surplus Sharing Proposal
Service Buy-Back Table
for Active Members Only

July 1st, 2000 Pensionable Earnings Rate

The Figures Below Indicate the Cost of Buying Back One Year of Service in the Plan

$20,000	$443	$553	$689	$858	$1,070	$1,333	$1,661	$2,070	$2,579	$3,215	$2,797
$25,000	$554	$691	$861	$1,073	$1,337	$1,666	$2,076	$2,587	$3,224	$4,018	$3,496
$30,000	$665	$829	$1,033	$1,287	$1,604	$1,999	$2,492	$3,105	$3,869	$4,822	$4,195
$35,000	$776	$967	$1,205	$1,502	$1,872	$2,333	$2,907	$3,622	$4,514	$5,625	$4,894
$40,000	$910	$1,134	$1,413	$1,761	$2,194	$2,734	$3,407	$4,246	$5,292	$6,594	$5,737
$45,000	$1,068	$1,331	$1,659	$2,067	$2,576	$3,210	$4,001	$4,986	$6,213	$7,742	$6,736
$50,000	$1,227	$1,529	$1,905	$2,374	$2,958	$3,686	$4,594	$5,725	$7,134	$8,890	$7,734
$55,000	$1,385	$1,726	$2,151	$2,680	$3,340	$4,162	$5,187	$6,464	$8,055	$10,038	$8,733
$60,000	$1,543	$1,923	$2,397	$2,987	$3,722	$4,638	$5,780	$7,203	$8,977	$11,187	$9,732
$65,000	$1,702	$2,121	$2,643	$3,293	$4,104	$5,114	$6,374	$7,943	$9,898	$12,335	$10,731
$70,000	$1,860	$2,318	$2,889	$3,600	$4,486	$5,590	$6,967	$8,682	$10,819	$13,483	$11,730
$75,000	$2,019	$2,515	$3,135	$3,906	$4,868	$6,066	$7,560	$9,421	$11,740	$14,631	$12,728
$80,000	$2,177	$2,713	$3,381	$4,213	$5,250	$6,543	$8,153	$10,160	$12,662	$15,779	$13,727
$85,000	$2,335	$2,910	$3,627	$4,519	$5,632	$7,019	$8,746	$10,900	$13,583	$16,927	$14,726
$90,000	$2,494	$3,108	$3,873	$4,826	$6,014	$7,495	$9,340	$11,639	$14,504	$18,075	$15,725
$95,000	$2,652	$3,305	$4,119	$5,132	$6,396	$7,971	$9,933	$12,378	$15,425	$19,223	$16,723
$100,000	$2,810	$3,502	$4,365	$5,439	$6,778	$8,447	$10,526	$13,117	$16,347	$20,371	$17,722

20

25

30

35

40

45

50

55

60

65

70

Age as of July 1st, 2000

Notes on how to use this table:

1. Determine the period of time, in years, between your "date of employment" at McMaster and your "date of enrolment" in the Pension Plan by looking at your Personalized Surplus Sharing Estimate.

 
2. Find the value in this table that is based on the age and pensionable earnings closest to your actual age and pensionable earnings at July 1, 2000.

 
3. Multiply the result in 1 by the result in 2 to estimate the cost of buying back your eligible service.

EXAMPLE:  A Member starts working at McMaster on January 1, 1995 and enrols in the Salaried Pension Plan on July 1, 1995.  The Member therefore has 6 months, or 0.5 years of eligible service to buy back.  If the Member is 46 years old at July 1, 2000 with pensionable earnings of $42,000, the cost shown in the table for someone age 45 with $40,000 of pensionable earnings is closest to the Member's actual situation.  This cost is $2,734 for one year of service.  The estimated cost to the Member for buying back 6 months of service is: $2,734 x 0.5 = $1,367

At this time, the Plan does not cover pensionable earnings in excess of $100,000.  A precise calculation tailored to your individual circumstances will be provided at a later date when you are asked to decide how you wish to receive your surplus share.
 

For more information see message from Les Robb, dated April 15, 2002.

pdk - April 15, 2002