The 2% retirement date occurs on which date?

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Multiple Choice

The 2% retirement date occurs on which date?

The concept being tested is how pension accrual rates are tied to hire dates and a plan’s benefit structure. The “2% retirement date” is the date on which the plan began applying a 2% per year accrual for new service. In this plan, that boundary is January 1, 1979, meaning service earned on or after that date uses the 2% per year rule to determine retirement benefits, while service before that date would be under the older rate.

The concept being tested is how pension accrual rates are tied to hire dates and a plan’s benefit structure. The “2% retirement date” is the date on which the plan began applying a 2% per year accrual for new service. In this plan, that boundary is January 1, 1979, meaning service earned on or after that date uses the 2% per year rule to determine retirement benefits, while service before that date would be under the older rate.

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