What is Rule of 75 for retirement?

Answered by John Hunt

The Rule of 75 for retirement is a requirement that employees of SNET (Southern New England Telephone) must meet in order to be eligible for Retired Employee medical benefits. This rule applies to regular employees who were hired or rehired by SNET on or before March 31, 1995.

To meet the Rule of 75, an employee’s years, months, and days of actual age and service must total at least 75 years. This means that the sum of an employee’s actual age (in years, months, and days) and their total years of service with SNET should equal or exceed 75.

For example, if an employee is 60 years old and has worked for SNET for 15 years, they would meet the Rule of 75 because the sum of their age and service (60 + 15) equals 75. Similarly, if an employee is 65 years old and has worked for SNET for 10 years, they would also meet the Rule of 75.

The purpose of the Rule of 75 is to ensure that employees have dedicated a significant portion of their lives to the company before they can receive Retired Employee medical benefits. By meeting this rule, employees demonstrate their long-term commitment and service to SNET, making them eligible for these benefits.

It is important to note that the Rule of 75 specifically applies to Retired Employee medical benefits. There may be other eligibility criteria or requirements for different retirement benefits, such as pension plans or other forms of compensation. Each company or organization may have its own specific rules and criteria for retirement benefits, so it is essential to understand the specific requirements of your own employer.

In my personal experience, I have seen the Rule of 75 for retirement applied in various companies and organizations. It is a common way for employers to establish eligibility criteria for retirement benefits, ensuring that employees have invested a significant amount of time and service before receiving certain benefits.

The Rule of 75 serves as a benchmark for employees to meet in order to qualify for Retired Employee medical benefits. By accumulating a combined total of at least 75 years of actual age and service, employees demonstrate their commitment and dedication to the company, making them eligible for these benefits upon retirement.