Vesting/defined benefit

[Guest efstreet]

When ERISA was passed into law in 1974, My company indicated in a letter that I was given three years credit for service prior to age 30 (plan required participating to be age 30 to join). I also was told that I was given $1 monthly annuity credit for each year of prior service. I was told I was fully vested at age 37, not age 40, which would have been case if ERISA was not enacted. If I terminated employment at age 37, I would have been entitled to 50% of my acculuative annuity at age 55 (early retirement). The company's payout starts at 50% for less than twenty years PARTICIPATING service, and goes up in increments until it's 61% based upon 25 or more years of PARTICIPATING service@age 55.

Question: Does the three year prior (prior to age 30) participating service ( age 27,28,29) count toward total years of participating servive, althoughactual years under THE PLAN is 21 years. Am I entitled to benefits based upon 21 years or 24 years

[MGB]

There are three kinds of service under the law. (1) Years of service towards meeting the minimum participation requirements, (2) Years of service towards vesting, and (3) Years of service for benefit accrual purposes.

For purposes of early retirement reduction factors (the 50% or 61%), the plan can define a completely different type of service, but most will refer to either (2) or (3) above.

You need to know two things before the answer is clear. (1) How does the plan define service for this purpose? (2) What kind of service did the letter grant you (is it this same definition of service)?

The plan administrator should be able to easily provide you this information.