TN 10 (09-90)
RS 01402.320 Retirement And Pre-Retirement Pay Criteria
1. Retirement Pay
These payments are generally made at regular intervals, for life, and based on the employee having met one or more of the following criterion:
Attained a specified age; or
Worked for the employer a required number of years; or
Discontinued or substantially reduced his/her services to the employer.
2. Pre-Retirement Leave
Some employers, hoping to encourage early retirement, offer their employees pre-retirement leave payments which normally represent a percentage of the employee's regular pay.
Plans providing for such payments are generally based on:
The employee having met a length of service requirement; or
Payments being made for a limited time immediately prior to and up to the retirement date; or
The employee having stopped all work for the employer, is not on standby or subject-to-call, and is not expected to return to work; or
Benefits such as medical protection are continued, and amounts paid prior to normal retirement are counted in determining the benefit amount.