The quotient obtained using this formula equals the employee's total months of service, reported and deemed, for the calendar year. Any fraction or remainder in the quotient is credited as an additional month of service.
$29,700 ÷ 12 $2,475
$20,000-$22,275 0
Since the amount on line (6) is zero, employee B does not have enough non-tier I compensation to be credited with deemed months of service. B is credited with only nine reported months of service for the year.
$29,700 ÷ 12 $2,475
$25,000-$22,275 $2,725
Since the amount on line (6) is greater than zero, employee B has enought non-tier I compensation to be credited with deemed months of service. B now satisfies all the requirements for deeming, therefore his months of service for the calendar year are calculated using the formula in § 210.3(b)(2) .
10.10 becomes 11
Employee B is credited with 11 months of service for 1985; nine reported months (January through September) and two deemed months (October and November).
20 C.F.R. §210.3