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Rule of 90 Formula:
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The Rule of 90 is a retirement eligibility formula used by many pension plans that allows retirement when an employee's age plus years of service equal at least 90. This rule provides an alternative pathway to retirement before reaching the standard retirement age.
The calculator uses the Rule of 90 formula:
Where:
Explanation: If the sum of your age and years of service equals or exceeds 90, you are eligible for retirement under this rule.
Details: Calculating eligibility under the Rule of 90 helps employees plan their retirement timeline, understand when they can access pension benefits, and make informed decisions about their career and financial future.
Tips: Enter your current age in years and your total years of service. Both values must be valid positive numbers. The calculator will determine if you meet the Rule of 90 criteria.
Q1: Does the Rule of 90 apply to all pension plans?
A: No, the Rule of 90 is specific to certain pension plans, particularly in education, government, and some corporate plans. Always check your specific plan documents.
Q2: Are there any age restrictions with the Rule of 90?
A: Some plans may have minimum age requirements even if the Rule of 90 is met. Typically, the minimum age is around 55-60 years.
Q3: How are partial years of service calculated?
A: Most plans calculate service years in whole years, but some may use months or decimal points. Check your specific plan's calculation method.
Q4: Can I retire if I meet the Rule of 90 but haven't reached normal retirement age?
A: Yes, that's the primary purpose of the Rule of 90 - to allow early retirement with full or reduced benefits depending on the specific plan.
Q5: Does military service count toward service years?
A: This varies by pension plan. Some plans allow buying back military time, while others do not count it toward service years.