Rule
of 80 Early Retirement
Eligibility and Retirement Effective Date
To be eligible
for rule of 80 early retirement you must be:
- Vested
in this plan.
- Age
55 through age 61.
- Your
age plus whole years of credited service in this plan equals 80 or more. For
example, if you are age 55 and have 25 years of credited service in this plan,
you satisfy this eligibility requirement for rule of 80 early retirement.
Similarly, if you are age 58 and have 22 years of credited service in this plan,
you satisfy this eligibility requirement.
- Have
at least 750 covered hours in this plan sometime in the three calendar years
immediately preceding your retirement effective date.
- No
longer working in the building and construction industry in any geographic
area.
Your
retirement effective date is the later of the first of any month following your
55th
birthday or the first of the month following receipt of your completed
Application.
For
additional information about rule of 80 early retirement eligibility, please see
Article
4.2.3 and Article
6.12.1.
Monthly Benefit
Under rule of 80
early retirement, your monthly income is your total monthly benefit, less the
appropriate reduction for a joint and survivor benefit (if applicable). Joint
and survivor factors are listed in Table 7. The following examples
illustrate how to calculate a rule of 80 early retirement income.
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Calculations
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Example 1
You
retire at age 55 with a single life benefit of $2,000.00
Total Monthly Benefit = Monthly
Benefit
$2,000.00 = $2,000.00
In this example, your $2,000.00 total monthly benefit is not
reduced because there is no early retirement reduction with rule of 80 early
retirement and there is no reduction for a survivor benefit with a single life
benefit. This represents an increase over the monthly income payable under
special early retirement at age 55 and an increase over the monthly income
payable under regular early retirement at age 55.
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Example 2
You
retire at age 55 with a total monthly benefit of $2,000.00. Your spouse is five
years younger than you and you elect a 50% joint and survivor benefit:
Total Monthly Benefit x Joint and Survivor
Reduction Factor = Monthly Benefit
$2,000.00 x
.8550 (85.50%) = $1,710.00
$1,710.00 per month for your
lifetime
$855.00 per month for your surviving spouse’s lifetime
In this example, your $2,000.00 total monthly benefit is
reduced by $290.00 to provide a continuing monthly income for your surviving
spouse’s lifetime.
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Your
rule of 80 early retirement income can be increased with the pension enhancement
option (please see Pension Enhancement
Option).
Post-Retirement Employment Under the Rule of 80
If you retire
under the rule of 80 and engage in post-retirement employment above the minimum
level allowed by the plan (39.5 hours per month), your monthly benefit will be
suspended (please see Post-Retirement
Employment and Suspension of
Benefits).
When your monthly benefit is reinstated, it will be recalculated at the monthly
benefit level provided under regular early retirement.
This
represents a substantial loss in monthly income and cannot be
changed. Please contact the
Retirement Department at the Trust Office if you have any questions about
post-retirement employment.
For
additional information about the monthly benefit available under rule of 80
early retirement, please see Article
6.2.3.
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