Many times, throughout the year, an employee has an opportunity to stay on the job, put retirement off for a while to take or apply for promotion. When the promotion is approved, the picture has changed, especially for the retirement. Higher salary which leads to a higher H-3, and a bigger retirement. The most impact will come when the higher salary is drawn for three years, therefore raising the H-3, but also, you have added 3 or more years to your calculation and in some cases, age may reach or exceed age 62, also, a higher calculation rate.
An example: Helen is 59 years old; she has achieved her MRA and 30 years. She makes $75,000.00 per year:
- $75,000.00 x 1.0 x 30 (years) = $22,500.00/$1,875.00 per Mo
Helen applied for promotion, and was accepted, and plans on working 3 more years.
- $90,000.00 x 1.10 x 33 (years) = $32,677.00/ $2,723.00 pe mo.
