Earnings Required for One Credited Service Month Will Increase Effective January 1, 2026

Credited Service Months (CSMs) are used in both the Basic and Supplemental Pension Plans to determine vesting status. For the Basic Pension Plan, CSMs are also used along with your earnings to determine the amount of your monthly benefit. You earn CSMs based on your reportable earnings during a calendar year and can earn a maximum of 12 CSMs in any given year.

Effective January 1, 2026, the earnings required to accrue one CSM will increase from $4,100 to $4,300.

This means at least $51,600 in covered earnings will be required during the 2026 calendar year to earn the maximum 12 CSMs. This change is in line with the recently negotiated earnings increases under the Collective Bargaining Agreements.

For more information on this increase, including examples, refer to the 204(h) Notice enclosed with this newsletter.