Special
Early Retirement
Eligibility and Retirement Effective Date
To be eligible
for special early retirement you must be:
- Vested
in this plan.
- Age
55 through age 64.
- 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 special early retirement eligibility, please see
Article
4.2.2 and Article
6.12.1.
Monthly Benefit
Under special
early retirement, you can retire at ages 62-64 and your total monthly benefit is
not reduced for early retirement. To qualify for special early retirement, you
must have five years of credited future service in this plan and have at least
750 covered hours in this plan sometime in the three calendar years immediately
preceding your retirement effective date. If you retire between the ages of 55
and 61 and satisfy these same requirements, your early retirement reduction is
less than it would be if you retired under regular early
retirement.
Under special
early retirement, your monthly income is your total monthly benefit, less the
appropriate reduction for special early retirement (if applicable), less the
appropriate reduction for a joint and survivor benefit (also 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. Special early retirement reduction factors are
listed in Table 6. Joint and survivor factors are listed in Table
7. The following examples illustrate how to calculate a special early
retirement income.
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Calculations |
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Example 1 You
retire at age 62 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 at ages 62-64 with
special early retirement and there is no reduction for a survivor benefit with a
single life benefit.
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Example 2 You
retire at age 60 with a single life benefit of $2,000.00:
Total Monthly Benefit x Special Early
Reduction Factors = Monthly Benefit
$2,000.00 x
.9400 (94.00%) = $1,880.00
In this example, your $2,000.00 total monthly benefit is
reduced by $120.00 for special early retirement. This represents an additional
9.00% subsidy by the plan under special early retirement.
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Example 3
You
retire at age 60 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 Special Early
Reduction Factors = Monthly Benefit
$2,000.00 x
.9400 (94.00%) = $1,880.00
Reduced Monthly Benefit x Joint and Survivor Reduction Factor = Monthly
Benefit
$1,880.00 x .8550 (85.50%) =
$1,607.40
$1,607.40 per month for your lifetime
$803.70 per
month for your surviving spouse’s lifetime
In this example, your $2,000.00 total monthly benefit is
reduced by $120.00 for special early retirement and by $272.60 to provide a
continuing monthly income for your surviving spouse’s lifetime.
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Your special
early retirement income can be increased with the pension enhancement option
(please see Pension Enhancement
Option).
For
additional information about the monthly benefit available under special early
retirement, please see Article
6.2.2.
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