4.3 Qualified, Early, and Rule of 80 Retirement Benefits
If you meet the Qualified Retirement requirements, you may retire at or after age 60 with unreduced benefits. If you meet the Early Retirement requirements, you may retire at or after age 57 with unreduced benefits. If you meet the Rule of 80 requirements, you may retire as early as age 50 with unreduced benefits.
If you meet all but the age requirement of the Qualified or Early Retirement benefit, you may retire as early as age 52 with benefit payments reduced to account for commencement before age 60 (Qualified Retirement) or age 57 (Early Retirement).
To qualify for a Qualified, Early, or Rule of 80 Retirement, you must meet the requirements below for that benefit, including the specified amount of Contributory Years of Service. A Contributory Year of Service is computed as follows.
- You earn one Contributory Year of Service if you have between 1,000 and 2,000 Contributory Hours in a Plan Year. You earn proportionately more than one Contributory Year of Service for working more than 2,000 Contributory Hours in a Plan Year (this is computed by dividing your Contributory Hours in that Plan Year by 2,000). You earn proportionately less than one Contributory Year of Service if you work less than 1,000 Contributory Hours in a Plan Year (this is computed by dividing your Contributory Hours in that Plan Year by 1,000).
- Only Contributory Hours count toward determining your Contributory Years of Service. For example, the following will not count toward Contributory Years of Service: Past Service, Contiguous Non-Covered Employment, hours for which you have received a lump sum payment, or other hours you work for which an Employer does not contribute to the Plan.
- If you recapture service under Section 6, Recaptured Vesting and Benefit Service, it will count as Contributory Hours toward your Contributory Years of Service in the Plan Year that it is recaptured. Otherwise, if you had a Break-in-Service before you were vested and did not reinstate your benefits by re-establishing Participation in the Plan according to Section
3.4.1, Reinstatement of Benefits, any Contributory Years of Service earned before your Break in Service cannot be counted.
4.3.1 Qualified Retirement Benefit
To be eligible for a Qualified Retirement benefit, you must:
- be at least age 60;
- have at least 1,500 Contributory Hours in either the consecutive three Plan Year period after you reach age 49 or the 36 months after you reach age 49 and before you retire; and
- have at least 20,000 Contributory Hours or 10 Contributory Years of Service.
If you previously retired and took a lump sum payment (other than a small annuity described at Section 7.6, Payment of Small Annuities), service before that retirement is not counted in determining your eligibility for a Qualified Retirement benefit. Also, your initial retirement payment is not recalculated if you subsequently qualify for a benefit under this Section. See Appendix C for other Qualified Retirement benefits.
| Age |
Factor |
| 60 |
1.0000 |
| 59 |
.8968 |
| 58 |
.8059 |
| 57 |
.7255 |
| 56 |
.6543 |
| 55 |
.5911 |
| 54 |
.5348 |
| 53 |
.4845 |
| 52 |
.4396 |
EXAMPLE:
Sandra is age 60. She has credit for 19,500 Contributory Hours and five Contributory Years of Service after June 30, 1990. She will be eligible for retirement with full benefits after she works 500 more Contributory Hours (for a total of 20,000 hours).
4.3.2 Early Retirement Benefit
To be eligible for an Early Retirement benefit, you must:
- be at least age 57; and
- have at least 50,000 Contributory Hours or 25 Contributory Years of Service.
If you previously retired and took a lump sum payment (other than a small annuity described at Section 7.6, Payment of Small Annuities), service before that retirement is not counted in determining your eligibility for an Early Retirement benefit. Also, your initial retirement payment is not recalculated if you subsequently qualify for a benefit under this Section. See Appendix C for other Early Retirement benefits.
| Age |
Factor |
| 57 |
1.0000 |
| 56 |
.9019 |
| 55 |
.8147 |
| 54 |
.7371 |
| 53 |
.6678 |
| 52 |
.6059 |
EXAMPLE:
Jerry is age 54. He has credit for 35,300 Contributory Hours and 26 Contributory Years of Service. When he reaches age 57, he will be eligible for unreduced retirement benefits. He may retire now with benefits actuarially reduced from age 57.
4.3.3 Rule of 80 Retirement Benefit
To be eligible for a benefit under the Rule of 80, you must:
- Be at least age 50;
- Your age plus Contributory Years of Service must total at least 80;
- After June 30, 1990, you must have earned at least 10,000 Contributory Hours or 5 Contributory Years of Service;
- Your employer must have been required to pay the Rule of 80 Surcharge for a total of at least 1,000 hours of your work. The 1,000 hours may be spread over the Plan Year when you retire and the immediately preceding Plan Year, or over the two Plan Years before the Plan Year in which you retire. Plan Years run from July 1 to June 30. Note that the 1,000 hour requirement is measured from the date you actually retire, not the date your age plus years of service first total at least 80;
- Your retirement under the Rule of 80 must be at least 12 months after your Employer was first required to pay the Rule of 80 Surcharge (described below) on your behalf. For example, if your Employer first pays the Rule of 80 Surcharge on your behalf as of July 1, 2001, even if you meet all the Rule of 80 criteria as of December 31, 2001, the earliest you can retire under the Rule of 80 is July 1, 2002.
The Rule of 80 Surcharge is the portion of a Contribution that is specifically designated as a Rule of 80 Surcharge required by your employer’s Collective Bargaining Agreement or Written Agreement with the Trust. For the Rule of 80 Retirement Benefit to be payable, this Surcharge must be included in your employer’s Collective Bargaining Agreement or Written Agreement before July 1, 2007 or within six years of your position becoming Covered Employment, whichever is later. The Rule of 80 Surcharge is not included in the calculation of your retirement benefit.
If you previously retired and took a lump sum payment (other than a small annuity described at Section 7.6, Payment of Small Annuities), the service before that retirement is not counted in determining your eligibility for Rule of 80 benefit. Also, your initial retirement payment is not recalculated if you subsequently qualify for a benefit under this Section.
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