Maximum Earnings Calculation - Examples


Non Management Title

            Pay rate before retirement                  56,500/yr (grade 11, step 9)

            Current pay rate for position title        57,630/yr (grade 11, step 9)
            employee retired from1
            Retirement pension                              45,200/yr
            Max 960 hour earnings                       12,430/yr

1 New collective bargaining salary chart, may or may not include reclassification


Management Title

           Pay rate before retirement                   87,430/yr (Exec Mgr VIII)

            Current pay rate for position title       90,052/yr (Exec Mgr VIII)
             employee retired from 2
            Retirement pension                             69,944/yr
            Max 960 hour earnings                       20,108/yr



2 The above calculation is based upon an average base salary increase of 3% for one year.  Agencies may use average managerial base salary increases as a guideline for determining the current pay rate for management titles.  There may be other legal alternative methods of calculating the current pay rate for the position from which the employee retired.  Agencies may contact HRD if they wish to pursue these options.   As indicated above, it is strongly recommended that agencies document their calculation method in case they become subject to audit.