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Choosing a Pension Effective Date
Your pension effective date is the date when your Plan benefits are first payable. It must be the first of the month. Other rules affecting your choice of pension effective date are explained below.
Early Retirement (Before Age 65)
You can choose to start your retirement benefit on the first of any month after you are eligible for early retirement and are considered retired from employment.
Usually, you become eligible for early retirement on your 55th birthday (sometimes called your earliest retirement date). However, if you are not vested when you reach age 55, your earliest retirement date is postponed until the first of the month after you vest. You may be able to retire before age 55 if you qualify for the Rule of 84 or a PEER program. Click here for more information.
Disability Retirement (Before Age 65)
You can choose to start your disability retirement benefit on the first of any month after you meet all the qualifications for Plan disability benefits (see Chapter 8). The date cannot be before your disability entitlement date as determined by Social Security assuming you meet all other eligibility requirements. The entitlement date is printed on your Social Security Disability Award Certificate. In some instances it takes Social Security several months to determine your eligibility for benefits.
Your Plan’s disability retirement benefits are not subject to the retro payment rule and can be paid retroactive to the effective date of your Social Security disability benefit.
Normally, you would choose the earliest possible effective date for your Plan’s disability retirement benefit. But if you are within a few months of meeting the age requirements for unreduced early retirement benefits under a PEER program, you may want to postpone your pension effective date until you qualify for PEER retirement (so that your disability retirement benefit will be paid at 100%). Contact your Area Administrative Office for more information.
Note: Special procedures may apply to handling your application for a disability retirement benefit. Click here for more information.
Normal Retirement (From Ages 65 to 70)
Once you reach your normal retirement date, you can choose to start your retirement benefit on the first day of any later month up to your 70th birthday.
Usually, you become eligible for normal retirement on your 65th birthday. However, if you are not vested when you reach age 65, your normal retirement date is postponed until you become vested. Click here for special vesting rules for participants age 65 and older.
Automatic Retirement (Age 70 and Older)
Once you reach age 70, you must start drawing your retirement benefits even if you are still 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 of that month.
Note: If you are not vested when you reach age 70, your pension effective date is postponed until you become vested. Click here for details on special vesting rules for participants who enter the Plan after age 65.
To avoid substantial tax penalties, you should file your application no later than your 70th birthday. This allows enough time for your Area Administrative Office to process your application so your actual pension payments can start well before April 1 following the year when you turn age 70 1/2.
If you miss this deadline and are no longer working, the Internal Revenue Service can impose substantial tax penalties on you. Click here for more information.
If you are near age 70 (or older) and not yet receiving your pension, contact your Area Administrative Office immediately.
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