Home
Back
85 Factor Formula:
| From: | To: |
The 85 Factor is a retirement eligibility rule used in many pension plans where an employee qualifies for unreduced retirement benefits when their age plus years of service equals or exceeds 85.
The calculator uses the 85 Factor formula:
Where:
Explanation: If the sum of age and years of service equals or exceeds 85, the individual typically qualifies for full retirement benefits without reduction.
Details: Meeting the 85 Factor is significant as it often allows for early retirement with full pension benefits, which can be a crucial financial planning milestone for employees in pension-based retirement systems.
Tips: Enter your current age and total years of service. Both values must be valid positive numbers (age typically between 50-70, service between 10-40 years for most pension plans).
Q1: Is the 85 Factor rule universal?
A: No, the 85 Factor is specific to certain pension plans, particularly in government and education sectors. Always check your specific plan rules.
Q2: What if I don't meet the 85 Factor?
A: If you don't meet the 85 Factor, you may still be able to retire but possibly with reduced benefits or at a later age, depending on your pension plan's specific rules.
Q3: Does part-time service count toward the 85 Factor?
A: This varies by pension plan. Many plans convert part-time service to full-time equivalent, but you should verify with your specific plan administrator.
Q4: Can the 85 Factor change over time?
A: Pension plan rules can be amended, so it's important to stay informed about any changes to your specific plan's eligibility requirements.
Q5: Is the 85 Factor the only retirement eligibility rule?
A: No, most pension plans have multiple retirement eligibility criteria, including minimum age requirements and minimum service years, in addition to the 85 Factor rule.