Vesting means that you have satisfied the service requirements for a pension and will be eligible for a pension once you meet the age and other requirements. Once you are vested, your previously earned Pension Credit cannot be cancelled.
You can become vested in three ways:
- Ten Year Vesting – You are vested once you have accumulated 10 Pension Credits. Learn more.
- Limited Five-Year Vesting – You are vested once you have accumulated 5 Pension Credits without a Permanent Break in Service and have satisfied the Activity Test.
- Normal Retirement Age Vesting – You are vested once you have attained Normal Retirement Age (65) without a Permanent Break in Service.
Log onto your Benefits Manager to view your Pension Credits under the earnings tab or view your Pension Summaries under Pension tab then select Statement and Documents.
Refer to the SPDfor further information on Vesting and Break in Service.
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Now, let's delve into the concepts mentioned in the provided article about vesting and pension credits:
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Vesting: Vesting refers to the point at which an individual has fulfilled the necessary service requirements to become eligible for a pension. Once vested, the individual is entitled to receive a pension upon meeting specific criteria, such as reaching a certain age and fulfilling other stipulated requirements. Importantly, once vested, the previously earned Pension Credit cannot be revoked.
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Pension Credits: Pension Credits are units that contribute to an individual's pension benefits. In the context of the article, there are three ways to become vested based on the accumulation of these credits:
- Ten Year Vesting: Achieved once an individual accumulates 10 Pension Credits.
- Limited Five-Year Vesting: Attained by accumulating 5 Pension Credits without experiencing a Permanent Break in Service and by satisfying the Activity Test.
- Normal Retirement Age Vesting: Attained when an individual reaches the Normal Retirement Age (65) without a Permanent Break in Service.
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Permanent Break in Service: The concept of a Permanent Break in Service is crucial in determining vesting eligibility. To be vested, individuals must accumulate Pension Credits without experiencing a Permanent Break in Service. This emphasizes the continuous and uninterrupted nature of service for pension eligibility.
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Checking Vesting Status: The article mentions accessing information about Pension Credits through a Benefits Manager. Individuals are advised to log in and navigate to the earnings tab for an overview of their Pension Credits or view Pension Summaries under the Pension tab, specifically by selecting Statement and Documents.
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SPD (Summary Plan Description): The article directs readers to refer to the SPD for additional information on Vesting and Break in Service. The SPD is a comprehensive document that outlines the terms and conditions of the pension plan, providing detailed information on various aspects, including vesting rules and circ*mstances leading to a Break in Service.
In conclusion, the article underscores the importance of accumulating Pension Credits and maintaining continuous service to achieve vesting status, while also highlighting the tools and resources available for individuals to track their pension benefits and gather detailed information through the Benefits Manager and SPD.
