ACRE's members are now retiring under our new pension plan. Members now retiring are receiving their calculated benefits for The MTA Pension Plan, payable July 1, as well as Railroad Retirement Tier 1 and Tier 2 pension amounts which are payable immediately. A member of ACRE Local 1, a New Haven line Conductor who recently retired, has been kind enough to share his pension numbers with us so our members can see what retirees are now entitled to receive.

As with anything new, this is a learning process for all of us and there may be slight adjustments to these figures when they become payable on July 1.

This member was earning an average of $76,699.00 annually while working. His total retirement pension is estimated at approximately $75,396.06 annually.
Our newer members should receive even higher benefits by having more years in the system (he had 21.25 years with Metro North).

His average wages for the best three consecutive years out of his last ten years were $76,699.00

Railroad Retirement Benefits:
Tier I $1,726.00
Tier II 1,115.84
2,841.84 (self) per month 1,365.13 (spouse) per month

Railroad Retirement Annuity $ 34.102.08 (self) per year
16,381.56 (spouse) per year
Total Railroad Retirement Annuity $ 50,483.64

MTA Defined Pension Plan Benefits:

Average wage earnings for the three best years was $76,699.00
x .02 x 21.250 (years w/MN) $32,596.93

The offset is calculated on the Tier II earnings divided by 60 months (last 5 years of service)
258,303.22 ÷ 60 = 4305.05 x .007 x 35.4166 x 12 x .60 = 7684.51 (offset amount)

MTA pension $32,596.93
Tier II Offset 7,684.51
Total MTA Plan Benefit $24,912.42

Totals:
RRB $50,483.64
MTA Plan 24,912.42
Total Pension $75,396.06

Average Salary Prior to Retirement $76,699.00

If he chooses to have 100% Survivor Annuity he would use the above MTA figure of $24,912.42x 0.8560 = $21,325.03 for a reduction of $3,587.39 annually to assure that his wife would receive his full MTA coverage in the event he predeceases her.

In addition, keep in mind that while working, his wages were subject to 12% Railroad Retirement Taxes. Pension benefits are not subject to that 12% tax.