Reminder - Change to 50/20 provision in 2013

As we approach the end of 2011, we would like to remind members of the following change, originally announced in 2008, that may be of importance to members with 20 or more years of pensionable service, who are under age 55, and may be leaving the college system.

The Plan’s 50/20 provision allows members with 20 or more years of pensionable service and who are 50 or over to retire and start an immediate lifetime pension prior to age 55. Because these members are under age 55, they also have the option of a payout of the commuted value (CV) of their pensions, instead of collecting a lifetime pension. Choosing a CV means giving up the right to a guaranteed lifetime pension from the Plan. It also means managing their own investments and other risks. The 50/20 provision exists to facilitate early retirement for members who have accrued a lot of pensionable service.

Starting January 1, 2013, the CV payout option will be eliminated for members who qualify for the 50/20 provision. Eligible members will continue to benefit from an immediate or deferred pension that starts early and is paid for life. No other members who are eligible for an immediate pension have eligibility for a commuted value transfer.

Members who terminate before age 55 with less than 20 years of pensionable service, who are not, therefore, eligible for an immediate pension, can still choose the CV option up to age 55.