A pension band is a figure that is used when calculating the monthly benefit for a defined benefit pension program. A pension band figure, which is typically changes each year, is generally a dollar amount that the person will receive monthly for each year of service with the employer when they retire.. The pension band generally varies by job title/grade level/occupation covered by a pension plan.. Once assigned, the job title, grade level and occupation will generally remain in that band unless the job title, grade level and occupation (by location) are later reclassified to a different pension band.
Example of Basic Monthly Benefit Calculation.
The following hypothetical example shows how a basic monthly benefit is calculated assuming: •
You are in pension band 115.
The monthly benefit for pension band 115 is $55.49
In this example, the monthly benefit for a person with 30 years of credited service would be
Monthly benefit for pension band 115 ($ 55.49 Multiplied by 30 years of net credited service x 30 Basic monthly benefit = $1,664.70