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SERS/Hybrid Pension Calculations FY18

Important note for those in the SERS and Hybrid retirement programs:

As you likely are aware, last September, as a result of the SEBAC agreement, we started contributing an additional 1.5 percent of our earnings toward our retirement. 
This increase didn't take effect until the seventh pay period of fiscal 2018. Therefore we have to "make up for" the first six pay periods in which that increase was not deducted. These catch-up payments will be spread out over the last 12 pay periods of fiscal 2018, starting with the paycheck dated Feb. 2.
The formula to calculate this additional deduction is:
1) Take 1.5 percent of earnings from the first six pay periods of fiscal 2018 (the "missed" contributions).
2) Divide that amount by 12 to spread that out over the last 12 pay periods of fiscal 2018.
While this would average out to roughly and additional 6/12 (or 0.5 percent) of earnings over 12 pay periods, it's important to understand that there will be variance for some employees based on fluctuations in pay (such as overtime, changes in shifts, etc.). 
By the last paycheck of fiscal 2018, the contributions will have added up to the equivalent of the agreed-upon 1.5 percent increase in employee retirement contributions over the full year.
The good news is, starting in July:
1) These catch-up deductions go away.
2) The deduction for our fiscal 2018 furlough days also goes away.
3) We receive the $2,000 lump sum per the SEBAC agreement (pro-rated for part-time employees)
While we can't claim that as a raise, it is a net gain in take-home pay. And remember, we did negotiate two years of step increases and GWIs starting July 2019.

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