Income Sources - Employees' Retirement Plan
The Employees' Retirement Plan (ERP) is
a defined benefit pension plan provided to biweekly paid employees. This plan is
paid for entirely by Duke. You automatically become a member if you are age 21
or older and you have completed one full year of employment (1,000 hours of paid
time). You are vested, or entitled to a benefit from the ERP, after completing
five years of continuous service. A year of continuous service is a fiscal year
in which you have at least 1,000 hours of paid time. The plan offers flexibility
in deciding when you want to retire as indicated below:
- Early Retirement can be anytime after you reach 45 with at least 15 years of credited service.
- Normal Retirement is at age 65.
- Postponed Retirement occurs if you work past your normal retirement date. You can retire on the first day of any month after your normal retirement date.
Benefit Calculation: Your annual benefit is calculated according to a
formula based upon your average final compensation and years of credited
service. The current ERP benefit calculation formula is as follows:
1.25% of average final compensation
times
years of credited service up to 20 years
PLUS
1.66% of average final compensation
times
years of credited service over 20 You may receive additional credited service
for unused sick leave or Carry Over Bank balance based on this fraction:
Your unused sick leave or carry over bank
2080 To obtain an estimate of your monthly retirement benefit, you may send a
Request for
Payment Information Form to the Human Resource Information Center (705 Broad Street).
Payment Options
Payment Options under the ERP are as follows:
- Option 1-Single Life Annuity-You receive your full benefit for as
long as you live. No benefits are payable after death. This is the automatic
form of payment for single retirees, but must be authorized by your spouse
if you are married.
- Option 2-100% Joint and Survivor Annuity-100% Joint and Survivor
Annuity-You receive a reduced monthly lifetime pension. After you die, your
beneficiary receives 100% of your reduced benefit for life.
- Option 3-50% Joint and Survivor Annuity- 50% Joint and Survivor
Annuity- You receive a reduced monthly lifetime pension. After you die, your
beneficiary receives 50% of your reduced benefit for life. This is the
automatic payment for married retirees.
- Option 4-Lump Sum Payment-Only available if the total present
value of your benefit in a single sum is not greater than $10,000.
- Option 5-Level Income Option-If you retire before 62 or 65, you
may elect to receive a larger benefit from the ERP until you reach age 62 or
65. At age 62 or 65, your ERP benefit will reduce when you are likely
eligible to receive Social Security or other retirement benefits.
Working at Duke During Retirement: Retirees receiving a benefit from the ERP
who continue to work at Duke after retirement are limited to working 19 or fewer
hours per pay period (less than 1,000 hours per fiscal year). If a retiree works
1,000 or more hours in a fiscal year, they continue to earn credited service in
the plan making the status as a retiree no longer valid. If this occurs, the
monthly benefit is suspended until the participant actually retires. NOTE:
A more detailed brochure is available from the HRIC describing the Employees'
Retirement Plan.
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