What Is Age Reduction Schedule

Age reduction schedules are a product of the Age Discrimination in Employment Act (ADEA). … Section 623 of ADEA states: “… where, for each benefit or benefit package, the actual amount of payment made or cost incurred on behalf of an older worker is no less than that made or incurred on behalf of a younger worker.”

What does age reduction mean?

Age-Reduced Early Retirement Benefits Early retirement benefits under the Age-Reduced provision allow you to retire early with reduced lifetime retirement benefits. … This means Age-Reduced benefits vary based on your age at retirement, so the younger you are, the more your benefits are reduced.

How does age reduction work with life insurance?

It is, therefore, possible under the act to reduce life insurance coverage each year beginning at age 65 by a stated percentage of benefits or to make a larger one-time percentage benefit reduction at age 65 and maintain the resulting benefit level until age 70.