Annuity - a series of monthly income payments that continue as long as you live.
Cash-out - a payment option provided under the Spectrum Retirement Plan. When you choose the cash-out option, your entire retirement benefit is paid to you in one lump-sum cash payment when you retire or terminate, which you may keep (incurring applicable taxes and penalties if you take it before legal retirement age) or roll over to either an IRA or another employer's plan.
Compensation - generally equal to your total compensation including your base pay, bonus, and overtime.
Continuous credited service - used in determining the amount of your Retirement Plan benefit. Based on the years of service during which you were covered by a defined benefit plan.
Defined benefit - funded by the employer, and provide a benefit that is determined by a formula that is spelled out in the plan. Usually, it involves compensation and years of service. Generally, the longer someone works under the same defined benefit plan, the larger the retirement benefit.
Earnings credit - interest credited to your Spectrm Retirement Plan account each year. The earnings credit is based on the 30-year Treasury Bond Yield Statistic.
Pay credit - a percent of pay credited to your Spectrum Retirement Plan based on your age and years of continuous credited service at the beginning of the year.
Vesting - your right or ownership of a benefit. You must have five years of continuous credited service to become vested in the Spectrum Retirement Plan and three years of continuous credited service to become bested in the Spectrum Investment Savings Plan matching contributions. You are always vested in any contributions you make to the Spectrum Investment Savings Plan. Remember, you are neither required nor permitted to make contributions to the Spectrum Retirment Plan.