For members covered on or after January 1975, how are credited years of service calculated?

For members covered on or after January 1975, how are credited years of service calculated?

• A. Based on the total annual contributions made
• B. Using the average monthly salary credit
• C. Based on the number of calendar years with six or more contributions
• D. Calculated from the date of employment

Answer: (C)

For individuals who became members after January 1975, the calculation of credited years of service is determined by the number of calendar years in which they made six or more contributions. This approach recognizes the importance of consistent contributions to the system over a defined period, reflecting a commitment to the retirement plan and ensuring that individuals who actively participated in the system are rewarded with credited service time. Crediting years of service based solely on the total annual contributions or the average monthly salary credit would not take into account the regularity and consistency of contributions, which is vital for accessing benefits. Similarly, calculating credited service from the date of employment does not consider whether the individual met the contribution minimum, which is essential for establishing a reliable measure of service. Therefore, counting by the number of calendar years with six or more contributions provides a clear and effective means of determining credited service that aligns with the structured requirements of the labor code.

For individuals who became members after January 1975, the calculation of credited years of service is determined by the number of calendar years in which they made six or more contributions. This approach recognizes the importance of consistent contributions to the system over a defined period, reflecting a commitment to the retirement plan and ensuring that individuals who actively participated in the system are rewarded with credited service time.

Crediting years of service based solely on the total annual contributions or the average monthly salary credit would not take into account the regularity and consistency of contributions, which is vital for accessing benefits. Similarly, calculating credited service from the date of employment does not consider whether the individual met the contribution minimum, which is essential for establishing a reliable measure of service. Therefore, counting by the number of calendar years with six or more contributions provides a clear and effective means of determining credited service that aligns with the structured requirements of the labor code.