In 2010, the Michigan state legislature changed the retirement plan for public school teachers. Retirement pension salary of a Michigan public school teacher is a percentage of the average of their salary for last three years of teaching. Normally, the number of years of teaching service is the percentage multiplier. To encourage senior teachers to retire early, the Michigan legislature enacted the following incentive structure: ◾ Teachers must apply for the incentive before June 11, 2010. ◾ Teachers who are currently eligible to retire (age >= 63) shall have a multiplier of 1.6% on their salary up to, and including $90,000, and 1.5% on compensation in excess of $90,000. ◾ Teachers who meet the 80 total years of age plus years of teaching shall have a multiplier of 1.55% on their salary up to and including $90,000 and 1.5% on compensation in excess of $90,000. Make a decision table to describe the retirement pension policy, be sure to consider the retirement eligibility criteria carefully. What are the compensation multipliers for a person who is currently 64 with 20 years of teaching whose salary is $95,000?
In 2010, the Michigan state legislature changed the retirement plan for public
school teachers. Retirement pension salary of a Michigan public school teacher
is a percentage of the average of their salary for last three years of teaching.
Normally, the number of years of teaching service is the percentage multiplier.
To encourage senior teachers to retire early, the Michigan legislature enacted
the following incentive structure:
◾ Teachers must apply for the incentive before June 11, 2010.
◾ Teachers who are currently eligible to retire (age >= 63) shall have a multiplier of 1.6% on their salary up to, and including $90,000, and 1.5% on compensation in excess of $90,000.
◾ Teachers who meet the 80 total years of age plus years of teaching shall have
a multiplier of 1.55% on their salary up to and including $90,000 and 1.5% on
compensation in excess of $90,000.
Make a decision table to describe the retirement pension policy, be sure to
consider the retirement eligibility criteria carefully. What are the compensation
multipliers for a person who is currently 64 with 20 years of teaching whose
salary is $95,000?
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