Normal Retirement Allowance Sample Clauses
The Normal Retirement Allowance clause defines the standard pension benefit an employee is entitled to receive upon reaching the plan's specified retirement age and meeting any required service conditions. Typically, this allowance is calculated based on factors such as years of service and final average salary, and it becomes payable once the employee retires at the normal retirement age outlined in the plan. The core function of this clause is to provide clarity and predictability regarding retirement benefits, ensuring employees understand what they will receive upon normal retirement and helping employers manage long-term benefit obligations.
Normal Retirement Allowance. Any employee under this Plan shall become eligible to receive a retirement allowance upon the attainment of age 65 and the completion of 10 years of continuous service. Any employee who has become eligible for a retirement allowance under this Section may elect to retire, or may be retired at the option of the Authority, and upon such retirement shall be entitled to receive the normal retirement allowance provided by this Plan. The annual normal retirement allowance under this Plan payable to any employee who retires with 10 or more years of service, after attaining the age of 65, shall be for each year (or fraction thereof based on completed months) of service, the sum of:
1. With respect to future service, one and six-tenths percent (1.60%) of the employee's average compensation during those four (4) years of the employee's service during which he earned the highest total pay, effective May 1, 1996, the formula shall be improved to one and sixty-five hundredths percent (1.65%) of average compensation, and, effective with respect to employees with an effective date of retirement on or after November 1, 2001, the formula shall be improved to one and eighty-five hundredths percent (1.85%) of average compensation. Effective with respect to employees with an effective date of retirement on or after November 1, 2007, the formula shall be 1.85% of average compensation for each year (or fraction thereof based on completed months) of service up to 27 at retirement, plus 1.95% of average compensation for each year (or fraction thereof based on completed months) of service in excess of 27 at retirement.
2. with respect to past service, (prior to May 1, 1973), one (1.0) percent of the employee's average compensation during those four (4) years of the employee's service during which he earned the highest total pay. The annual normal retirement allowance shall be paid in twelve (12) equal monthly installments. For employees on leave of absence while holding office in, or performing duties for, the Union or its International Office or the Transit Employees' Federal Credit Union, compensation shall include sums earned as compensation while holding such office or performing such duties. However, the minimum monthly normal retirement allowance under this Plan shall be one hundred seventy-five dollars ($175). Effective May 1, 1995, a full unreduced retirement will be available to any employee with twenty-seven (27) years of service regardless of age. Any employee may elect...
Normal Retirement Allowance. (a) Any Member in service who reaches his/her normal retirement date shall be eligible to retire on a normal retirement allowance to become effective on his/her normal retirement date. However, no Member will be involuntarily retired by the Retirement Board solely because of the age of the Member.
(b) The normal retirement allowance shall consist of:
(1) A membership service allowance equal to
Normal Retirement Allowance. The monthly Normal Retirement Allowance of a Participant who Retires under Section 3.1 shall be an amount, commencing as of the Participant’s Actual Retirement Date, equal to one-twelfth of the quantity (a) the Managerial Retirement Objective (“MRO”) below, minus (b) the Social Security Offset below, minus (c) below:
(a) The MRO shall be equal to Final Average Compensation multiplied by the lesser of (1) or (2), below:
(1) the sum of (i) and (ii):
(i) 2.4% for each year of Formula Benefit Service accrued prior to January 1, 1989
(ii) 1.7% for each year of Formula Benefit Service accrued on or after January 1, 1989
(2) 60% minus 2.4% for each year prior to 1979 that the Employee failed to make or repay the required employee contributions pursuant to Section 6.
(b) The Social Security Offset shall be equal to the Participant’s Social Security Benefit (as defined in Section 1.20) multiplied by the lesser of (1) or (2), below:
(1) 1. 7% for each year of Formula Benefit Service
Normal Retirement Allowance. The monthly Normal Retirement Allowance of a Participant who Retires under Section 3.1 shall be an amount, commencing as of the Participant’s Actual Retirement Date, equal to one-twelfth of the quantity (a) the Managerial Retirement Objective (“MRO”) below, minus (b) the Social Security Offset below, minus (c) below:
(a) The MRO shall be equal to Final Average Compensation multiplied by the lesser of (1) or (2), below:
(1) the sum of (i) and (ii):
Normal Retirement Allowance a. 2.5% of final average pay for each year of the first twenty (20) years of service and 2% for each year thereafter
b. Maximum of 70% of final average pay
c. Final average pay equals employee's highest three of the last five years of gross earnings.