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The City of New Orleans

Mayor Mitchell J. Landrieu

Calculations

How monthly pensions are calculated?

A member’s retirement allowance is based on his/her average annual base earned compensation. This amount is calculated using the member’s highest average thirty-six (36) months of eligible earnings. The average compensation is multiplied by the Board approved percentages as noted below:

2.5% per year – Years 1 through 25
4% per year – Years after 25

NOTE: The maximum pension benefit is 100% of the average annual base compensation and is granted to members with 34 years and 5 months of creditable service.

Sample Monthly Pension Calculations
Example A Example B
$1,000.00 average eligible earnings $1,000.00 average eligible earning
10 years of service 30 years of service
10 x 2.5% = 25% 25 years x 2.5% = 62.5%
  5 years x 4% = 20%
  62.5% + 20% = 82.5%
Total pension  Total pension 
25% x $1,000.00 = $250.00/mo 82.5% x $1,000.00 = $825/mo
 
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Last updated: 6/20/2014 4:35:49 PM

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