The pension benefit is not insignificant because it is estimated to cost 25% of salary over the entire 25-year period to fund a pension benefit of half the salary at age 55 for someone who starts employment at age 30. While this estimate is based on a 5% interest rate for discounting present values, a 3.5% annual salary growth rate and mortality according to the Annuity 2000 Merged Gender Mod 1 Table with ages set back 2.0 years. The key point to use the same assumptions to compare the annual yearly cost as a percent of salary for a half pay pension for someone starting at age 30 and retiring at age 62. The additional seven-year wait would drive the cost down to under 17% of salary annual cost. In essence, the MTA's proposal was a greater than 8% salary cut across the board. Using a slightly worse mortality table, the effective salary cut is still within the 7% to 6% salary cut range in terms of value given up. By not accepting the MTA pension offer, Local 100 of the TWU was not forced to a cut. Citing the rising cost of health care, the MTA wanted new employees to contribute 1% of their salary to pay for health insurance. Transit workers currently do not pay for health insurance.