TN 10 (09-90)

POLICY

1. Retirement Pay

These payments are generally made at regular intervals, for life, and based on the employee having met one or more of the following criterion:

• Attained a specified age; or

• Worked for the employer a required number of years; or

• Discontinued or substantially reduced his/her services to the employer.

2. Pre-Retirement Leave

Some employers, hoping to encourage early retirement, offer their employees pre-retirement leave payments which normally represent a percentage of the employee's regular pay.

Plans providing for such payments are generally based on:

• The employee having met a length of service requirement; or

• Payments being made for a limited time immediately prior to and up to the retirement date; or

• The employee having stopped all work for the employer, is not on standby or subject-to-call, and is not expected to return to work; or

• Benefits such as medical protection are continued, and amounts paid prior to normal retirement are counted in determining the benefit amount.