Most of us don’t even think about the contributions that come out of our paycheck that go towards building a guaranteed lifetime pension from the ASRS. When we do, it’s usually not until we’re getting very close to that long sought-after retirement date.
Sometimes members notice they are getting paid more than what is being reported to the ASRS for their pension. The first question they have is “how can that be?”
Employers have many different types of compensation they pay to their employees. They include: regular pay, bonus pay, overtime pay, and termination pay, among others. Not all types of pay, however, are eligible to be used for calculating an ASRS pension. Some types of pay are excluded by law. As a member, it’s not always easy to know if a type of pay is eligible to be used for your pension.
To help resolve those questions, the ASRS has developed a new tool that can help clear through the confusion, provide a better understanding of what types of pay are eligible and is simple to use. Simply enter a few pieces of information, select the type of pay you received and how much, and get an instant answer on whether or not the type of pay is eligible to be used towards your pension as well as how much the contribution should be.
If you get an answer that surprises you, talk with your employer about it. They can explain why the type of payment in question is or is not eligible for ASRS contributions.
To find out more and try it out, visit Calculate Your ASRS Contribution on our website.
Aaron Chandler, Strategic Communications
