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This section explains the retirement benefit you can receive if you decide to retire at age 65—the Plan's normal retirement age. If you retire later than age 65, your benefit is higher.
Topics Below
Benefit Amount
Retirement at Age 65
Retirement from Ages 65 to 70
Automatic Retirement at Age 70
Pension Effective Date
Late Retirement Factor
Benefit Amount
No matter which type of retirement benefit you receive,
the amount is always based on your normal retirement benefit. Remember,
your normal retirement benefit is the total of:
- Your five-year average benefit for your covered employment before 1987 (see Five-Year Average Benefit), and
- Your contribution account benefit for covered employment in 1987 and later (see Contribution Account Benefit).
This amount assumes that you choose the life only pension. If you choose a form of payment other than the life only pension, your benefit amount is different. Click here for information about payment options. 
Retirement at Age 65
Once you are vested and reach your normal retirement age (usually age 65), you can choose to begin receiving your benefits and still work for the same employer or any other employer. And it does not matter how many hours you work.
If you join the Plan within two years of your 65th birthday, your normal retirement age is the second anniversary of your first covered hour.
Important Note: Your collective bargaining agreement may control whether you can still continue your covered work after you start receiving your retirement benefits. Many contracts have rules that concern loss of seniority or other rights at retirement. Be sure to find out about these rules beforehand from your local union or employer if you are age 65 or over and intend to continue work for the same employer after your pension starts.
If you choose to begin receiving your benefits at age 65, you will receive 100% of your normal retirement benefit. If you choose to begin receiving your benefits while you are still working in covered employment, your retirement benefit is calculated using only the covered hours and basic employer contributions you earn up to your elected pension effective date. However, you may qualify for a pension increase based on your covered employment after your pension effective date.
Remember that as long as you are vested, you don’t have to work until age 65 to be eligible for benefits. You may be eligible as early as age 55 (or even sooner if you qualify under the Rule of 84 or PEER).
Retirement After Age 65
If you decide to continue working in covered employment past age 65,you can choose to begin receiving benefits later. The covered hours you earn after age 65 add to your retirement benefit.
In addition, your retirement benefit is increased for each month after age 65 that you delay your retirement up to age 70. This is called your late retirement factor.
Once you reach age 70, you must start receiving benefits even if you stay in covered employment.
If you work past your pension effective date, your retirement benefit is
calculated using only the covered hours and basic contributions you earn up to that date. However, you may qualify for a pension increase based on your covered employment after your pension effective date.
Automatic Retirement at Age 70
Once you reach age 70, you must start drawing your retirement benefits even if you keep working. Your pension effective date cannot be later than the first of the month following your 70th birthday. If your 70th birthday falls on the first of a month, your pension effective date cannot be later than the first day of that month.
To avoid substantial tax penalties, you should file your application no later than your 70th birthday so your actual pension payments start before April 1 following the year when you turn age 70 1/2. If you miss the "April 1-Age 70 1/2" deadline and are no longer working, the Internal Revenue Service can impose substantial penalties on you.
If you are near age 70 or already over age 70, and have not yet filed a retirement application, contact your Area Administrative Office immediately. To avoid or minimize any tax penalties, you need to get a completed retirement application on file so your benefit payments can begin as soon as possible.
If you have any questions about these or other tax
issues affecting your benefits, contact your personal tax advisor or the
Internal Revenue Service.
Late Retirement Factor
If you wait to retire after age 65, your total normal retirement benefit is multiplied by a late retirement factor. The longer you wait, the higher your late retirement factor. This helps you earn an even higher benefit for each month you stay in covered employment from age 65 to age 70.
Click here to see an example of how late retirement benefits are higher.
To meet federal requirements, the Plan says you must start drawing benefits by age 70—even if you keep working.
Click here for questions and answers about Normal Retirement.
Beginning January 1, 2003, vested participants who continue working after age 65 can begin receiving their pension benefits no matter how many hours they work.
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