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SOUND RETIREMENT | 14
Example of Breaks In Service
Example: Break in Service
Linda’s effective date of coverage under the Plan was October 1, 2008, after
which she earns 4 years of credited service. Then she has 4 successive Plan
Years in which she works less than 435 hours of service, earning a break in
service each year. The following year, beginning October 1, 2016, Linda works
800 hours, which adds 1 year of credited service to the 4 she originally earned.
In the Plan Year Linda worked… And earned her…
beginning…
10/1/08 1,400 hours 1st year of credited service
10/1/09 1,800 hours 2nd year of credited service
10/1/10 1,100 hours 3rd year of credited service
10/1/11 1,200 hours 4th year of credited Service
10/1/12 200 hours 1st break in service
10/1/13 345 hours 2nd break in service
10/1/14 275 hours 3rd break in service
10/1/15 400 hours 4th break in service
10/1/16 800 hours 5th year of credited service
Because Linda earned 5 years of credited service before having 5
consecutive break in service years, she becomes fully vested in her pension
benefit. If Linda had 5 consecutive break in service years before earning her
5 year of credited service, she would lose the pension benefit she earned
th
during her first 4 years of Covered Employment.
