NPPform

ILLUSTRATION OF 2.5% NPP PENSION FORMULA

payments in the first year on pension (2.5% x 12 months = 30%)

Over 150% of total contributions are returned in the first 5 years on pension

(2.5% x 60 months = 150%)

pensions)

Example (assuming contributions of 50¢ per hour for 30 years, or $32,000):

Total contributions $ 32,000

x 2.5%

Pension amount at age 65 - - per month $ 800

x 12

Amount received each year on pension $ 9,600

Cumulative pension received at age 80 (15 yr. x $ 9,600) $144,000

Percentage return on $32,000 contributions 450%

Cumulative pension received at age 85 (20 yr. x $9,600) $192,000

Percentage return on $32,000 contributions 600%

(2.5% formula is effective for all contributions after January 2003)