Page 38 - Life Assurance

Early Retirement Age:

An early retirement age is the earliest age
that workers can retire and receive a retirement
benefit. The majority of employee currently
retires before age 60. For example, a typical plan
may permit a worker with 20 years of service to
retire at age 50.

In a defined benefit plan, the retirement
benefit is actuarially reduced for early
retirement. The actuarial reduction is necessary
for three reasons:

(1) The worker’s full benefit will not have
accrued by the early retirement date;

(2) The retirement benefits is paid over a
longer period of time; and

(3) Early retirement benefits are paid to
some workers who would have died before
reaching the normal retirement age.

3- Deferred Retirement age:

The deferred retirement age is any age
beyond the normal retirement age. A relatively
small number of older employees continue
working beyond the normal retirement age.

However, under current law with no maximum
age limit as long as they can do their jobs.
Employees who continue working beyond the
normal retirement age continue to accrue benefits
under the plane.

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