Also this is R-11 ref from rebuttal Note correction from no accrual of vacation time to no accrual of credited service 6 Feb 2002
Arrggh - 9 Jan 02 - change s/b no accrual of pension
NOTE; THE GENERIC PLOT BELOW REFERS TO THE BOEING HERITAGE PLAN NO. 001 THRU 1995-96. A REVIEW OF THE MOST CURRENT SUMMARY PLAN DOCUMENT INDICATES NO CHANGES THAT WOULD AFFECT THIS PLOT OR MY COMMENTS AS OF THE TIME THE PVP PLAN CONVERSIONS WERE MADE. For a copy of this page as a pdf file, click here.
The square blocks were typical of your current vested value as of Jan 1, 199x as shown in your "personal benefit report ". This report was sent to you usually in August of every year thru1998. The "notch" or ' sawtooth ' is caused by two items. 1) The annual change in covered compensation [ 35 year average of SS wage base ] and 2) in some years the drop-off in December of the lump sums/productivity payments awarded 60 months previous. Paid M2 is what the calculation formula would show if you were to retire as the given month. In * some * but not all cases, Boeing would give you the highest value in Dec, which could result in several months with no accrual of pension. Note that due to the 2000 hour per year limit on credited service, your credited service is exactly the same for Dec and Jan, and in most cases for salaried 2000 hours/45hours per week occurs in Nov. In some cases, your calculations catch up in a month or two, in some cases 5 or 6 months. The Paid M2 is always higher then the shown vested because the vested numbers use only your salary history and not the effects of lump sum or productivity payments. In my opinion, the Benefit Correct line M3 is what the plan documents - properly interpreted really mean.