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- 49 - 37. Q. Take another combination of circumstances. Suppose I am a pilot with the prior service record shown in question 25, I have the record for the period July, 1949, through June, 1959, shown in question 30, and I am the pilot who quits to take another job at the end of June, 1959. The prior service credit total shown in question 25 was $28.98, and for the period after June, 1949, the credit according the question 30 is $95. If, as in question 33, I retire from this other job when I am 61, will I get an annuity of $123.98, assuming that I get full credit for the military service? A. No. You will get more because your military service is credited at your overall air line average, not the prior service air line average, taken of prior air line service. Each of these months is counted at the prior service average, $383. That counts as a total of $7660 in prior service compensation. By question 30 we get the total creditable compensation for the 120 months beginning with July, 1949, or $102,000. The total is $109,660, for prior and subsequent, and the over-all monthly compensation is $783.28 ($109,660 divided by 140). The annuity credit for each year of service is $1.00 plus 1 per cent of $783.28, or $8.8328. The total creditable service, including military service, is 16 years. Therefore, the total annuity will be 16 times $8.8328, or $141.32. In question 25, military service was counted the basis of prior service monthly compensation, or $383. In this calculation it is counted at the over-all monthly compensation for the air line part of the creditable service, or $783.28. This increases the value of the military service by $4.0028 for each year of it. Since there were 4-1/3 years in this case, the prior military service credit is increase by 4-1/3 times $4.0028, or $17.34. This, added to the $123.98 which you got by adding the prior service credit in question 25 to the subsequent service credit in question 30, gives the correct result of $141.32. 38. Q. Then the actual credit I get for military service will depend on my air line average compensation? A. That's right. 39. Q. Go back to question 37. Suppose I were to get a free pension on the basis of my 4-1/3 years in the Army of $25 per month. What would that do to the $141.32? A. When military service credited under the pilots' system is used also as the basis for a free Federal pension, the annuity under the pilots' system is to be reduced by the ratio of military service to total service, or by the amount of the free pension, whichever reduction is the smaller. In this case, the military service ratio is 4-1/3 to 16, which ratio, applied to $141.32, gives $38.27. The amount of the pension, $25, is smaller. Therefore, the $141.32 is reduced by $25 to $116.32. In other words, in this case you would get $13.27 more annuity under the pilots' system than you would if military service were not credited. 40. Q. Take one more case. In questions 37 and 39 we were dealing with an annuity for a pilot who quit flying in 1959 to take a job in another industry, and retired some years later when he was 61 years old. Suppose he did not quit flying voluntarily in 1959 but was forced out by a disqualification. Leaving out any free pension based on his military service, wouldn't he get the minimum of $200 per month right away? A. Yes.
