EXACT CONTRIBUTIONS THROUGH ANNUAL CALCULATION

Employees' earnings for the previous year must be reported annually by the end of January. This information is used to calculate the company's exact TyEL contribution in the annual calculation during the spring of the following year.

An annual calculation is made even when earnings have been reported monthly. The exact TyEL contribution for the previous year is calculated after the last earnings for the year have been reported by the 20th of January.

The TyEL technical rate of interest is used when calculating the advance contributions and the final contribution. The rate in early 2012 is 3.25%. During the first half of 2011 the rate was 4.5% and during the second half 4.75%.