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Annual Earnings Calculation
Your annual earnings, for PART B - Group Life and SIB benefit purposes is the GREATER of
a) Your daily rate of pay multiplied by 260.89 * (prorated for Members who work less than full time by multiplying this amount by the percentage of full time equivalent (FTE); AND
b) (i) Actual Gross Earnings for the last 26 pay periods, excluding the final pay period, up to a maximum of 120% of your daily rate of pay times 260.89*, OR
(ii) If you have been employed for less than 26 pay periods your actual gross earnings will be annualized up to a maximum of 120% of your daily rate of pay times 260.89, i.e. if employed for 14 pay periods, actual earnings would be earnings, excluding the final pay period, divided by 13 then multiplied by 26 to determine Annual Earnings.
* 260.89 is the average number of paid days in a work year (includes holidays, ATO days and vacation)
Example 1 - $200/day |
|
Actual earnings for the last 26 pay periods:** |
$55,000 |
Earnings based on Daily rate 260.89 x $200
Maximum Earnings ($200 x 260.89 x 120%):
Annual earnings for Benefit Purposes |
$52,178
$62,614
$55,000 |
Example 2 - $180/day with OT pay |
|
Actual earnings for the last 26 pay periods:** |
$57,000 |
Earnings based on Daily rate 260.89 x $180
Maximum Earnings ($180 x 260.89 x 120%):
Annual earnings for Benefit Purposes |
$46,960
$56,352
$56,352 |
Example 3 - $170/day, employed for 14 pay periods |
|
Actual earnings for the last 13 pay periods:** |
$25,712 |
Annualized Earnings ($25,712/13 X 26):
Maximum Earnings ($170 x 260.89 x 120%):
Annual earnings for Benefit Purposes |
$51,424
$53,222
$51,424 |
** Final pay period is excluded from the calculation
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