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.

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RS 01402.320 - Retirement And Pre-Retirement Pay Criteria - 02/14/1995
Batch run: 01/27/2009