Eligibility: An employee who has earned at least 1,000 hours or the equivalent of one-half year of service credit during each of the two years immediately preceding his/her admission to the Plan and go directly from active service into retirement shall be granted a retirement allowance by the Retirement Plan. Employees who qualify for retirement benefits shall be granted the retirement allowance even though their spouse elects the spouse allowance. The retirement allowance is not termination pay but is a retirement benefit provided at the time the participant is eligible for retirement benefits according to the following provisions:
- Amount: The maximum allowance shall be equivalent to 5 months (865 hours) remuneration including wages and cost of living adjustment, but not including travel allowance for employees with 40 years of service credit prior to January 1, 2000. For those with less than 40 years the allowance is equivalent to 12.5 percent of a month’s remuneration for each year of service credit prior to January 1, 2000. Prior receipt of a Termination Settlement shall not jeopardize or reduce the Retirement Allowance payable after December 31, 2004.
- Disability: Receipt of disability benefits from the Employee Disability Income Plan shall not jeopardize or reduce a Retirement Allowance payable after December 31, 2004.
- Special Exceptions: The requirement that employees go directly from active service into retirement in order to be eligible for a retirement allowance payable at the time regular retirement benefits begin may be waived if the following applies:
- Termination of active employment was no more than 36 months prior to being eligible to receive retirement benefits, and
- Termination of active employment was at the written recommendation of the university and approved by the Adventist Retirement Plan Committee, or
- The termination of active employment was due to the transfer of the spouse to a different location or because of retirement of the spouse, or
- The Adventist Retirement Plan Committee, because of exceptional circumstances, approves a request of the university to waive the requirement that an employee go directly from active service into retirement.
- Time of Payment: The retirement allowance shall normally be paid at the time of retirement and shall be computed at the current remuneration rate.
- Death before Retirement: If an employee was eligible to retire at the time of death, but was still employed, the surviving spouse shall be entitled to a retirement allowance.