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Earning Credits

Credits help your retirement savings grow and last longer​.

You start earning credits in your CLIP Account when you join. You continue earning credits after retirement as well. Credits are allocated to your CLIP Account automatically and regularly whenever they become available.

Credits are calculated based on a formula based mainly on the balance in your Personal Account and the Participation percentage you select.

Credits increase the savings available to provide your retirement income. The greater your participation, the more credits you earn.

Example of earning credits:
Let’s say that a member contributes $50,000 to the Community Fund as a legacy upon passing. That amount is immediately allocated proportionally to the CLIP Account of all CLIP members. Here is how your share of credits is calculated:
On that day, your Personal Account has a balance of $100,000 and you participate at 25%. The product of these numbers is $25,000. This same calculation is done for each member of the Community, for a total of $50 million.  Your proportion of the total is 0.05%.  Therefore, you get 0.05% of the $50,000 contribution, or $25. You get new credits worth $25 allocated in your CLIP Account that day.
YouCommunity
Personal Account Balance$100,000
Participationx 25%
Personal Account Balance x Participation$25,000÷ $50 million= 0.05%
Contribution to the Community Fund by Other Membersx $50,000
Your Share of Credits $25
* Assumes credit formula uses only Personal Account balance and Participation percentage.