Pension Summary Plan Description

4.3 Early and Rule of 85 Retirement Benefits

If you meet the Early Retirement requirements, you may retire at or after age 63 with unreduced benefits. If you meet the Rule of 85 requirements, you may retire as early as age 60 with unreduced benefits.

If you meet all but the age requirement of the Early Retirement or Rule of 85 benefit, you may retire as early as age 52 with benefit payments reduced to account for commencement before age 63 (Early Retirement) or age 60 (Rule of 85 Retirement).

To qualify for an Early or Rule of 85 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.

  1. You earn one Contributory Year of Service if you have at least 1,000 or more Contributory Hours in a Plan Year. 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). For Plan Years or portions thereof prior to January 1, 2012, you earn proportionately more than one Contributory Year of Service for working more than 2,000 Contributory Hours in that Plan Year or portion thereof (computed by dividing your Contributory Hours in that Plan Year or portion of a Plan Year by 2,000).
  2. 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.
  3. 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 Early Retirement Benefit

To be eligible for an Early Retirement benefit, you must:

  • be at least age 63 for an unreduced benefit; and
  • have at least 60,000 Contributory Hours or 30 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
63 1.0000
62 .8907
61 .7952
60 .7116
59 .6382
58 .5735
57 .5163
56 .4656
55 .4206
54 .3805
53 .3448
52 .3128

EXAMPLE:
Steve is age 58. He has credit for 68,304 Contributory Hours and 37 Contributory Years of Service. When he reaches age 63, he will be eligible for unreduced retirement benefits. He may retire now with benefits actuarially reduced from age 63.

4.3.2 Rule of 85 Retirement Benefit

To be eligible for a benefit under the Rule of 85, you must:

  • Be at least age 60 for an unreduced benefit;
  • Your age plus Contributory Years of Service must total at least 85 at the time you stop working in Covered Employment;
  • You must have a minimum of 10,000 Rule of 85 Surcharge hours and 1,000 hours of currency. For the currency, your employer must have been required to pay the Rule of 85 Surcharge for a total of at least 1,000 hours of your work, during the Plan Year in which you cease Covered Employment and the immediately preceding Plan Year or over the two immediately preceding Plan Years before the Plan Year in which you cease Covered
    Employment. Plan Years run from July 1 to June 30.
  • Your retirement under the Rule of 85 must be at least 12 months after your Employer was first required to pay the Rule of 85 Surcharge on your behalf.

The Rule of 85 Surcharge is the portion of a Contribution that is specifically designated as a Rule of 85 Surcharge required by your employer's Collective Bargaining Agreement or Written Agreement with the Trust (or specifically designated as a Rule of 80 Surcharge) under surcharge requirements adopted by the Board of Trustees. The Rule of 85 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 85 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
60 1.0000
59 .8968
58 .8059
57 .7255
56 .6543
55 .5911
54 .5348
53 .4845
52 .4396