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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2025
26
PLAN 1
PLAN 2
HYBRID RETIREMENT PLAN
Calculating the Benefit
The basic benefit is determined using the
average final compensation, service
credit and plan multiplier. An early
retirement reduction is applied to this
amount if the member is retiring with a
reduced benefit. In cases where the
member has elected an optional form of
retirement payment, an option factor
specific to the option chosen is then
applied.
Calculating the Benefit
See definition under Plan 1.
Calculating the Benefit
Defined Benefit Component:
See definition under Plan 1.
Defined Contribution Component:
The benefit is based on contributions
made by the member and any matching
contributions made by the employer, plus
net investment earnings on those
contributions.
Average Final Compensation
A member's average final compensation
is the average of the 36 consecutive
months of highest compensation as a
covered employee.
Average Final Compensation
A member’s average final compensation
is the average of the 60 consecutive
months of highest compensation as a
covered employee.
Average Final Compensation
Same as Plan 2. It is used in the
retirement formula for the defined benefit
component of the plan.
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