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I am retiring soon and I have heard that during the switch from a monthly pay period to a biweekly pay period in 2008, there was a .34 month loss of pensionable service. Is this true?
Dear Concerned Faculty Member,
Yes, this is absolutely true. For TRU faculty who were employed during 2009, you will recall that the University switched from semi-monthly to bi-weekly pay. Originally, faculty received a mid-month ‘advance’ on the 15th of the month, and then the remainder of their full monthly at the end of the month. When TRU Finance switched to bi-weekly pay in April 2009, there was a two-week hold back of pay, which resulted in every full-time faculty member being credited with only 11.66 months of pensionable service for the period September 1, 2008 through August 31, 2009.
The ‘lost’ 0.34 months of pensionable service (actually 0.333 months repeating) will be compensated at retirement. When faculty retire, their last salary deposit will include the additional pay and that payment will generate the 0.333 months pensionable service. The 2009 pensionable service will remain at 11.66 months, but the service reported in the Pension Corporation fiscal year during which you retire will include the additional 0.333 months.
Because the Pension Corporation reports pensionable service based on its fiscal year of September 1 to August 31, this can be a bit confusing. For example, if you retire on June 30, 2017, your pensionable service will be reported as 10 months (September 2016 through June 2017) plus the 0.333 months missing in 2009. If you retired on December 31, 2016, your pensionable service will be reported as 4 months (September through December 2016) plus 0.333 months missing in 2009.
In all cases, TRUFA encourages retiring members to contact both Theron Reed, TRU Human Resources manager in charge of pension issues, (firstname.lastname@example.org) and the Pension Corporation (1.888.440.0111) to ensure that you are being properly credited with pensionable service.
Thanks for asking TRUFA.