Understanding Actuarial Reduction

An actuarial reduction will be applied to your pension if you are a current Plan member and you:

  • Reach Rule of 80 after December 31, 2019, AND
  • Are under age 55 when you reach Rule of 80, AND
  • Choose to retire before age 55.

The closer you are to age 55 when you retire, the less the reduction will be. There will be no actuarial reduction if you retire at age 55+.

The reduction is based on the longer period of time over which the Plan expects to pay your lifetime pension benefit.


The actuarial reduction will not apply to you if you:

  • Are age 55+ when you retire, and/or
  • Reach Rule of 80 before Jan. 1, 2020
It will not apply to members who begin employment after Dec. 31, 2019 because they will need to be at least age 55 to retire.

To see how the actuarial reduction might affect your pension payments at different retirement ages, log on to the Online Pension Estimator through My HEB Online Services.

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