PERAC Memo #25 - 2002: Early Retirement Incentive (ERI) Program Spreadsheet
Early Retirement Incentive (ERI) Program Spreadsheet
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PERAC has developed an Excel spreadsheet to help boards estimate ERI costs by calculating a member's regular retirement benefit versus the maximum enhanced benefit under various age/service credit combinations (for up to 50 members). The tool does not calculate present value or amortization schedules needed for funding purposes. No action is required unless a board wants to use the tool, in which case it should email James Lamenzo to request a copy.
Full Text
Memorandum # 25/2002
M E M O R A N D U M TO: Retirement Boards FROM: James R. Lamenzo RE: Early Retirement Incentive (ERI) Program Spreadsheet
DATE: June 6, 2002
At our May 29 and May 30 seminars, we were requested to complete a spreadsheet to assist with ERI cost estimates. We now have available an Excel spreadsheet that can be used for this purpose.
The spreadsheet requires the input of a member’s age, credited service, 3 year average salary, and group classification. The program will then calculate the member’s benefit without the ERI and six calculations of the enhanced benefit with the ERI (adding 0 to age and 5 to service, 1 to age and 4 to service, etc.). The program determines the maximum enhanced benefit and the difference between this benefit and the benefit without the ERI for up to 50 members.
The spreadsheet does not include any present value calculations or amortization amounts used in determining a funding schedule.
If you are interested in receiving a copy of the spreadsheet, please send me an e-mail.
My address is James.R.Lamenzo@state.ma.us.