Benefit Factor Clause Samples
Benefit Factor. The factor used to determine an equivalent benefit rate to convert a defined contribution allocation rate to a defined benefit accrual rate for cross testing purposes. Standard mortality and interest rates as defined under Treas. Reg. Section 1.401(a)(4)-12 will apply. Normal Retirement Age as defined in Section 1.67.
Benefit Factor. 3.04(B)(5)(a) Break in Service. 1.31(A)(3)(i), 2.03(A), 5.06(A) Cash or Deferred Arrangement (CODA). 3.02(C) Cash-Out Distribution. 5.04(A)(1) Catch-Up Deferral. 1.20(D), 3.02(D)(2). Catch-Up Eligible Participant. 3.02(D)(1) Client Organization ("CO"). 12.02(D)(1)
Benefit Factor. Benefit factor is a percentage of pay to which one is entitled for each year of service. It is determined by one’s age at retirement and the retirement formula. The benefit factor increases with each quarter of year of attained age between ages 50 and 55 except for employees subject to PEPRA. The formulas are 2.7% @ age 55 for employees hired prior to June 9, 2012; 2.5% @ age 55 for employees hired on or after June 9, 2012; or 2.0% @ age 62 for new members hired on or after January 1, 2013 subject to PEPRA.