Borough of Glenolden, PA Article IV Early Retirement Benefits [1]

[1] Editor's Note: This article also included the following example: Tom Smith retires on his 60th birthday with 20 years of service. His average salary at retirement is $1,800 per month. He retires prior to October 1, 2002.

Tom would be entitled to a monthly pension of $360 (i.e., 1% x 20 x $1,800) commencing at age 65 and payable for his lifetime. Alternatively, Tom could elect to have reduced benefits commence on the first day of any month preceding his 65th birthday. For example, if Tom elected to have benefits commence immediately at age 60, his age-sixty-five benefit of $360 would be reduced by 25% (i.e., 5/12 of 1% x 60 months) to $270 per month payable for his lifetime. Tom would also have the opportunity to elect to have his early retirement benefits paid under an optional form that provides survivor benefits.

§ 31-9 Eligibility requirements.

A member will be eligible for early retirement benefits, provided that he retires from the Borough's employment prior to meeting the eligibility requirements for normal retirement benefits and, upon such retirement, he has attained at least age 55 and has completed at least 15 years of service.

§ 31-10 Benefit commencement date.

An eligible member may elect to have benefits as described in § 31-11 commence on the first day of any month coincident with or following his date of retirement. If the member retires on other than the first day of a month and elects to have benefits commence immediately, he will receive a pension payment for his initial month of retirement equal to the amount described in § 31-11 multiplied by the ratio of the days he is retired in the month to the full number of days in the month.

§ 31-11 Amount of benefits.

A. For any eligible member retiring prior to October 1, 2002, such eligible member's monthly pension will be equal in amount to 1% of his average salary at time of retirement multiplied by his years of service at retirement (not to exceed 35 years), reduced by 5/12 of 1% for each month by which the member's benefit commencement date precedes the first day of the month coincident with or next following the member's 65th birthday.

B. For any eligible member retiring on or after October 1, 2002, such eligible member's monthly pension will be equal in amount to 1.2% of his average salary at time of retirement multiplied by his years of service at retirement (not to exceed 35 years), reduced by 3/12 of 1% for each month by which the member's benefit commencement date precedes the first day of the month coincident with or next following the member's 65th birthday.

§ 31-12 Normal form of payment.

Benefits as described in § 31-11 will be paid in the form of a monthly annuity for the member's lifetime only.

§ 31-13 Optional forms of payment.

In lieu of receiving benefits in the normal form (a life annuity for the member's lifetime only), a member may, in accordance with § 31-30, elect to receive actuarially reduced benefits under a form of payment which provides survivor benefits.