Determining Credit Clause Samples

Determining Credit. For each full year service unit as described in Section (B) above, the employee may gain a two percent (2%) credit paid by the District towards the payment of the plan. Such credit will accrue annually until it reaches forty percent (40%) for twenty (20) full years of service. For the twenty-first (21st) year of service and beyond, the unit member gains one percent (1%) credit annually. The plan is designed to provide coverage until the retiree reaches sixty-five (65) years of age or when Medicare eligibility begins. For those who choose to retire at age fifty-six (56) and after with greater than twenty (20) years of service, a second coverage option becomes available. Such coverage provides for either a greater contribution rate by the District as determined by years of service until age sixty- five (65) or for ten (10) years coverage at a rate of thirty-five percent (35%). The chart attached describes the options and can be used to determine the amount and the term of credit.