PENSION OFFSET, Cost of benefit
CITE AS: Zajac v U.S. Post Office, No. 80-2340 AE, Macomb Circuit Court (February 9, 1981).
Appeal pending: No
Claimant: John Zajac
Employer: U. S. Post Office
Docket No: UCFE77 10907 56170
CIRCUIT COURT HOLDING: The "cost of the benefit" is the present actuarial value of the retirement benefit.
FACTS: Claimant worked for the U.S. Postal Service from 1942-1976. While claimant was employed, matching contributions were made by the claimant and the employer to the Federal Retirement Program. Claimant's total contributions to the fund were $15,939. Claimant receives a gross monthly annuity of $913. As of the date of claimant's separation, the total present value of the retirement benefit was $93,452.33.
DECISION: Claimant's weekly benefit rate is subject to adjustment under Section 27(f) despite the fact that claimant and employer made matching contributions.
RATIONALE: Claimant's contribution is less than 1/2 the present actuarial value of the retirement benefit.
3, 7, 14, 15, d5:C