The Pension Plan is a defined benefit plan that uses a formula based on earnings and service to determine the monthly retirement benefit.
Earnings are determined by averaging the highest 2 of the last 5 years of employment and generally include base pay, longevity and under certain circumstances assignment pay.
Years of service are converted to a service accrual factor equal to 3% multiplied by the first 25 years of service and 2.5% for every year thereafter with a maximum accrual factor of 90%.
Service accrues from the pension entry date until the termination of employment.
The accrual of service credit is prorated right down to the termination date including fractional parts of months and years. It is unnecessary to work through an anniversary date to earn a full year of service credit or a full month to receive credit for that month.
Early retirement benefits are then reduced by 5% annually for every year or fractional part thereof prior age 55.
When selecting a retirement date for early retirement benefits, termination of employment must occur on or after the first day of the month following age 55
completion of 15 years of service. After then employment may terminate on any day.
Examples of early retirement calculations are found within the Summary Plan Description and Member's Handbook.