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Example of Rule 75 Retirement: |
Mary Smith has worked for 25 years and is 50 years of age:
25 years + age 50 = 75 – meets Rule 75
Years of Service 25 X 2%= 50%
Average Monthly Compensation $2500.00
50% X 2500 = $1,250.00/ monthly benefit |
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Example of Maximum Retirement Benefit: |
John Doe has worked for 30 years and is 50 years of age:
30 years + age 50 = 80 – meets RULE 75 requirements
Years of Service 30 X 2% = 60% Maximum benefit
Average Monthly Compensation $3,000
60% X 3000 = $1,800/monthly benefit |
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Example Partial Vested (under 10 years of service): |
Jane Doe has worked for 7-1/2 years and is 65 years of age:
Age 65 is normal retirement with at least 5 years of service.
She is partial vested in the Plan with 7 full years of service or 55% vested.
Years of Service 7-1/2 X 2% = 15%
Average Monthly Compensation $2300
15% X 2300 = *** $345 X 55% = $189.75/monthly benefit
***Since Jane has only worked 7-1/2 years, she is only partial vested (55%). Therefore her benefit is reduced to 55% or $189.75/month. |
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Example of Early Reduced Retirement (age 60 with 5 Years Service) |
Years of Service 5 X 2% = 10%
Average Monthly Compensation $2000
10% X 2000 = $200***
***Reduced for “partial vested” only 25% vested = $50.00***
plus
***Reduced for “early” (only 60 yrs of age “normal” age 65 plus does not meet Rule 75)
(See Early Reduced Table - reduced 3% for each year prior to normal retirement)
“early” reduced by 85% or a monthly benefit of $42.50 |
