Rule of 80 Calculator

Formula

To calculate the Rule of 80 (R80):

\[ R80 = A + YS \]

Where:

\(R80\) is the Rule of 80
\(A\) is the age of the employee (years)
\(YS\) is the years of service at the company (years)

Rule of 80 Definition

The Rule of 80 is a calculation often used in pension plans to determine when an employee is eligible for full retirement benefits. It states that an employee can retire once their age plus years of service equals 80. For example, if an employee is 55 years old and has worked for the company for 25 years, they would meet the Rule of 80 and be eligible for full retirement benefits. The specifics of the rule can vary depending on the pension plan.

Example Calculation 1

Let's assume the following values:

Age of Employee (\(A\)) = 50 years
Years of Service (\(YS\)) = 30 years

Using the formula:

\[ R80 = 50 + 30 = 80 \]

The employee meets the Rule of 80 and is eligible for full retirement benefits.

Example Calculation 2

Let's assume the following values:

Age of Employee (\(A\)) = 45 years
Years of Service (\(YS\)) = 20 years

Using the formula:

\[ R80 = 45 + 20 = 65 \]

The employee does not meet the Rule of 80 and is not eligible for full retirement benefits.