Incremental Increases to Earnings Threshold for Pension Plans’ Credited Service Months (CSMs)

Credited Service Months (CSMs) reflect your DGA-covered service in the Pension Plans and 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 year.

Currently, you accrue one CSM per $3,600 in reportable earnings. Beginning January 1, 2021 and continuing through January 1, 2023, the earnings required for one CSM will increase as follows:

Time Period Requirement to Earn One Credited Service Month
2021 $3,700
2022 $3,800
2023 $3,900

These changes are in line with the recently negotiated increases to the minimum earnings requirements under the Collective Bargaining Agreements. For more information on these increases, including examples, refer to the government-required 204(h) notice enclosed in this newsletter.  

For more information on how CSMs affect your pension, refer to the March 2020 Pension Plans Summary Plan Description available at /forms/pension.