Q: I plan to retire in 2014, at which time I will be 67. I should have approximately 26 years of service. How much income will I receive once I retire? What percentage of my sick leave will be calculated as part of my retirement package? Will I be paid for any vacation time that I have on the books upon my retirement? Can I keep the life insurance I have or will it be reduced? If there is a reduction, what would be the total dollar value of my life insurance?
A: Based on your age (over 60) and service (at least 20 years), your annuity will be calculated using the following formula: 0.011 x your high-3 x your years and full months of service. Because you will be retiring on or after Jan. 1, 2014, all of your unused sick leave will be added to your actual service when computing your annuity. You will also receive a lump-sum payment for any unused annual leave. Assuming that you are asking about your Basic life insurance and had been covered by it for at least five years before retiring, you will be offered the option of keeping it at its current level, at 50 percent of its face value or allowing it to decline at a rate of 2 percent per month until it reaches 25 percent of its face value. You won’t have to pay any more premiums if you elect the 25 percent reduction; you will if you elect either of the other options.