Pensionable Salary Above the YMPE but Below the Salary Cap Semi-monthly

Assumptions:
Info Source Year Pay frequency Pensionable salary Annual YMPE for 2004 Annual salary cap for 2004 Contribution rates in 2004 Member Up to YMPE Above YMPE Employer Up to YMPE Above YMPE 2004 Semi-monthly (24) 1,750.00 40,500.00 103,816.00 5.602% 7.477% 6.602% 8.477% Employer payroll Employer payroll Facts & Figures Facts & Figures Facts & Figures

Step 1 Determine pensionable salary for the pay period.

Step 2 Determine pay period YMPE. Calculate the pay period YMPE by dividing the annual YMPE by the number of pay periods. 40,500.00 24 $1,687.50 Annual YMPE Number of pay periods Pay period YMPE

Step 3 Determine pay period salary cap. Calculate the pay period salary cap by dividing the annual salary cap by the number of pay periods. 103,816.00 24 $4,325.67 Annual salary cap Number of pay periods Pay period salary cap

Local Authorities Pension Plan

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December 2005

Step 4 Determine pay period pensionable salary above pay period salary cap. Subtract the pay period salary cap from the pay period pensionable salary. If the result is negative, there is no pay period pensionable salary above the pay period salary cap and the pay period pensionable salary then becomes the capped pay period pensionable salary for Step 5. If the result is positive, the pay period salary cap becomes the capped pay period pensionable salary for Step 5. 1,750.00 Pay period pensionable salary Pay period salary cap Pay period pensionable salary above pay period salary cap

- 4,325.67
$0.00

Step 5 Determine pay period pensionable salary up to and above YMPE. Subtract the pay period YMPE from the capped pay period pensionable salary. If result is negative, there is no pay period pensionable salary above the pay period YMPE and the capped pay period salary becomes the pensionable salary up to the YMPE for Steps 6 and 7. If the result is positive, the pay period YMPE becomes the pensionable salary up to the YMPE for Steps 6 and 7. 1,750.00 - 1,687.50 $62.50 Capped pay period pensionable salary Pay period YMPE Pay period pensionable salary above pay period YMPE

Local Authorities Pension Plan

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December 2005

Step 6 Calculate member contributions. Multiply the pensionable salary up to the YMPE and pensionable salary above the YMPE by the appropriate contribution rate. 1,687.50 x 5.602% $94.53 62.50 x 7.477% $4.67 Pensionable salary up to YMPE Up to YMPE contribution rate Contribution on pensionable salary up to YMPE Pensionable salary above YMPE Above YMPE contribution rate Contribution on pensionable salary above YMPE

Add the two results together to determine member contributions due. 94.53 + 4.67 $99.20 Contribution on pensionable salary up to YMPE Contribution on pensionable salary above YMPE Total member contributions for pay period

Step 7 Calculate employer contributions. Multiply the pensionable salary up to the YMPE and pensionable salary above the YMPE by the appropriate contribution rate. 1,687.50 x 6.602% $111.41 62.50 x 8.477% $5.30 Pensionable salary up to YMPE Up to YMPE contribution rate Contribution on pensionable salary up to YMPE Pensionable salary above YMPE Above YMPE contribution rate Contribution on pensionable salary above YMPE

Add the two results together to determine employer contributions due. 111.41 + 5.30 $116.71 Contribution on pensionable salary up to YMPE Contribution on pensionable salary above YMPE Total employer contributions for pay period

Local Authorities Pension Plan

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December 2005