Summary Plan Description (Revised January 1, 2012)

Regular Early Retirement

Eligibility and Retirement Date

To be eligible for regular early retirement you must be:

  • Vested in this plan;
  • Age 55 through age 64; and
  • No longer working in any type of work for an employer that contributes to the plan. 

Your retirement date cannot be earlier than the later of (1) the first of any month following your 55th birthday, or (2) the first of the month following receipt of your completed Application For Retirement Benefits and Election of Retirement Benefits form.

  • For additional information about regular early retirement eligibility, please see Article 4.2.1.
Monthly Benefit

Under regular early retirement, your monthly income is your total monthly benefit, less the appropriate reduction for early retirement, less the appropriate reduction for a joint and survivor benefit (if applicable). Your total monthly benefit is reduced because your monthly payments will begin earlier and will probably be paid for a longer period of time than if you had retired under normal retirement. Regular early retirement reduction factors are listed in Table 4. Joint and survivor factors are listed in Table 7. The following examples illustrate how to calculate a regular early retirement income.

Your regular early retirement income can be increased with the pension enhancement option described before.

Retirement benefits are taxable income. Retirement Services will automatically provide you with a Form 1099-R in late January of each year for the upcoming April 15 tax deadline. 

Calculations

Example 1

You retire at age 62 with a single life benefit of $2,000.00:

Total Monthly Benefit x Regular Early Reduction Factors = Monthly Benefit
$2,000.00 x .9100 (91.00%) = $1,820.00

In this example, your $2,000.00 total monthly benefit is reduced by $180.00 for regular early retirement.

Example 2

You retire at age 62 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 Regular Early Reduction Factors = Monthly Benefit
$2,000.00 x .9100 (91.00%) = $1,820.00

Reduced Monthly Benefit x Joint and Survivor Reduction Factor = Monthly Benefit
$1,820.00 x .8550 (85.50%) = $1,556.10
$1,556.10 per month for your lifetime
$778.05 per month for your surviving spouse's lifetime

In this example, your $2,000.00 total monthly benefit is reduced by $180.00 for regular early retirement and by $263.90 to provide a continuing monthly income for your surviving spouse's lifetime.

Key Point

The graph below compares a true actuarial reduction with the reduction provided by this plan's regular early retirement reduction factors (Table 4), special early retirement reduction factors (Table 5), and rule of 80 early retirement (no reduction). An actuarial reduction is provided with no subsidy. The regular early and special early retirement reductions are subsidized by the plan to provide early retirees with an improved benefit. Rule of 80 early retirement is heavily subsidized by the plan. 

Table 4
Regular Early Retirement Reduction Factors
If you are vested but do not qualify for the special early retirement reduction factors, you must use the reduction factors presented in this table. If you qualify for regular early retirement, select the age closest to your age on your retirement effective date. Then multiply your monthly benefit by the corresponding reduction factor.
Age Factor
64 - 11
99.75%
64 - 10
99.50
64 - 9
99.25
64 - 8
99.00
64 - 7
98.75
64 - 6
98.50
64 - 5
98.25
64 - 4
98.00
64 - 3
97.75
64 - 2
97.50
64 - 1
97.25
64 - 0
97.00
63 - 11
96.75
63 - 10
96.50
63 - 9
96.25
63 - 8
96.00
63 - 7
95.75
63 - 6
95.50
63 - 5
95.25
63 - 4
95.00
63 - 3
94.75
63 - 2
94.50
63 - 1
94.25
63 - 0
94.00
62 - 11
93.75
62 - 10
93.50
62 - 9
93.25
62 - 8
93.00
62 - 7
92.75
62 - 6
92.50
62 - 5
92.25
62 - 4
92.00
62 - 3
91.75
62 - 2
91.50
62 - 1
91.25
62 - 0
91.00
61 - 11
90.75
61 - 10
90.50
61 - 9
90.25
61 - 8
90.00
61 - 7
89.75
61 - 6
89.50
61 - 5
89.25
61 - 4
89.00
61 - 3
88.75
61 - 2
88.50
61 - 1
88.25
61 - 0
88.00
60 - 11
87.75
60 - 10
87.50
60 - 9
87.25
60 - 8
87.00
60 - 7
86.75
60 - 6
86.50
60 - 5
86.25
60 - 4
86.00
60 - 3
85.75
60 - 2
85.50
60 - 1
85.25
60 - 0
85.00
59 - 11
84.50
59 - 10
84.00
59 - 9
83.50
59 - 8
83.00
59 - 7
82.50
59 - 6
82.00
59 - 5
81.50
59 - 4
81.00
59 - 3
80.50
59 - 2
80.00
59 - 1
79.50
59 - 0
79.00 
58 - 11
78.50
58 - 10
78.00
58 - 9
77.50
58 - 8
77.00
58 - 7
76.50
58 - 6
76.00
58 - 5
75.50
58 - 4
75.00
58 - 3
74.50
58 - 2
74.00
58 - 1
73.50
58 - 0
73.00
57 - 11
72.50
57 - 10
72.00
57 - 9
71.50
57 - 8
71.00
57 - 7
70.50
57 - 6
70.00
57 - 5
69.50
57 - 4
69.00
57 - 3
68.50
57 - 2
68.00
57 - 1
67.50
57 - 0
67.00
56 - 11
66.50
56 - 10
66.00
56 - 9
65.50
56 - 8
65.00
56 - 7
64.50
56 - 6
64.00
56 - 5
63.50
56 - 4
63.00
56 - 3
62.50
56 - 2
62.00
56 - 1
61.50
56 - 0
61.00
55 - 11
60.50
55 - 10
60.00
55 - 9
59.50
55 - 8
59.00
55 - 7
58.50
55 - 6
58.00
55 - 5
57.50
55 - 4
57.00
55 - 3
56.50
55 - 2
56.00
55 - 1
55.50
55 - 0
55.00 

Early Retirement Reductions vs. True Actuarial Deduction chart