Hourly Monthly normal pension benefit Early Retirement Reduction After 20 Years of Service contribution rate for each year of past service credit If you have 20 or more years of credited service and 1,200 hours of service that includes 600 hours of service in 1993 or later; or if you 7.55 177.09 have 600 hours of service 1999 or later, the early retirement reduc- 7.60 177.96 tion described above is made for each month you are younger than 7.65 178.83 age 62 on the effective date of your pension. 7.70 179.70 HERE IS AN EXAMPLE: 7.75 180.57 Jo is age 61 when she retires with 20 years of credited 7.80 181.44 service. Her normal monthly pension benefit is $1,750. 7.85 182.31 Because of her 20 years of credited service, her early retire- 7.90 183.18 ment reduction will be measured from age 62 rather than 65. On the effective date of her pension she will be one year 7.95 184.05 — 12 months — younger than 62. So her benefit will be cal- culated as follows: 8.00 184.92 Figure the reduction 12 months times .004 = 0.048, or 4.8% TABLE TWELVE percentage: Calculate the early 4.8% times $1,750 = $84 SPECIAL RULES FOR GRANDFATHERED retirement reduction: PARTICIPANTS Amount of Your Early Retirement Pension Subtract the reduction $1,750.00 = Normal pension The amount of your early retirement benefit is determined by re- amount: ducing your normal pension by 4/10 of 1% (.004) for each month - 84.00 = Early retirement (4.8% for each year) that you are younger than age 65 on the effec- reduction tive date of your pension. $1,666.00 HERE IS AN EXAMPLE: Jo’s early retirement pension is $1,666 a month. This benefit amount may be further reduced depending upon the form of Dan is age 61 when he retires with 19 years of credited ser- payment she selects. vice. His service has earned him a normal monthly pension of $1,750. Since Dan will be receiving benefits for a longer period of time than if he retired at age 65 — 48 months lon - Early Unreduced Retirement Pension at Age 62 ger — his benefit will be calculated as follows: When you have reached age 62 and have 20 or more years of cred- Figure the reduction ited service, you will qualify for the normal benefit amount with no percentage: 48 months times .004 = 0.192, or 19.2% reduction because of your age, provided you have 1,200 hours of service including 600 credited hours of service in 1993 or later; or Calculate the early 19.2% times $1,750 = $336 you have 600 hours of vesting service in 1999 or later. retirement reduction: 30 and Out Pension Subtract the reduction The 30 and Out pension provides an unreduced pension benefit pay- amount: $1,750.00 = Normal pension able at any age. It is essentially an early retirement pension with no - 336.00 = Early retirement reduction for age. The basic requirement for the 30 and Out pension is reduction 30 years of credited service, at any age, provided you have 1,200 hours $1,414.00 of service or including 600 hours of credited service in 1995 or later; or 600 hours of vesting service in 1999 or later. Dan’s early retirement pension is $1,414 a month. This benefit amount may be further reduced depending upon the form of payment he selects. \\ Appendix 62