Comparison of Pension and Social Security Payments

Scenario: DOB: 12/31/1941; DOR: 12/31/2006

The examples below show the Current Oak Ridge Pensions and Social Security Benefits for four persons with current annual wages of $94,200, $75,000, $50,000 and $30,000. It shows the sum of the pension and social security would represent between 73% and 82% of these person's final wages. This is in contradiction to the DOE claim that the total benefits are 90% to 95% of the employee's final wages. Short of a drastically curtailed wage the last year no scenario is known to justify the DOE claim. If anyone knows of such a scenario, please contact Al Brooks.

Final Wages/Mo	$94,200	$75,000	$50,000	$30,000
Service, yrs	35	35	35	35
Pension Multiplier	1.4	1.4	1.4	1.4
SSA Growth Factor	-10	0	2	2
Wages (last 3 years)	[1]	[2]	[2]	[2]
2004	87900	70100	44900	27000
2005	90000	72000	47000	28200
2006	94200	75000	50000	30000
Final Wages/Mo	$7,850	$6,250	$4,167	$2,500
Five Year Average/Mo	$7,558	$6,031	$3,942	$2,367
SSA Benefit/Mo [3]	$1,950	$1,823	$1,231	$886
Pension/Mo [4]	$3,704	$2,955	$1,931	$1,160
Savings Plan [5]
Total Retiree Pay/Mo	$5,654	$4,778	$3,162	$2,046
Total/Mo as % of Final	72	76	76	82

Lifetime wages and Social Security,[3], estimated by SSA Quick Calculator: http://www.ssa.gov/OACT/quickcalc/

[1] Lifetime wages equal to Social Security Maximum Taxable Wages from SSA Quick Calculator

[2] Lifetime wages calculated by using SSA National Average Wage Indexing & SSA Quick Calculator

Assumed equivalence to items in Erbschole (DOE) to Reichle (CORRE) letter/charts:

[3] = Social Security; [4] = Defined Benefit; [5] = Defined Contribution; no Estimate Available

It seems improbable that [5], Defined Contribution, is 20 % of an employees final wages which would

be necessary to bring the Total/mo as % to 90% as claimed by DOE