The "Rule of 60" is a guideline often used in retirement plans, where an employee becomes eligible for a pension or early retirement benefits once their age combined with years of service equals 60. This rule aims to reward long-serving employees by allowing them to retire earlier with full or partial benefits.
Special Age Rule. If you cease to be continuously employed with your Employer on or after your attainment of age 60 (“Rule of 60 Retirement-Eligible Event”), all unvested PSUs may vest as provided in Section 2.1(a) above following completion of the Performance Period so long as you fully comply with the covenants provided in Section 3 hereof and provided that, if requested by your Employer, you execute and do not revoke a Transition/Separation Agreement and Release acceptable to your Employer. The balance of the PSUs that do not vest with respect to the Performance Period shall be deemed forfeited at the end of the Performance Period. Notwithstanding the foregoing, in the case of continued vesting following a Rule of 60 Retirement-Eligible Event, if you commence employment with a new employer that grants you a new award that replaces all or any portion of this award, any portion of this award that has been replaced by your new employer will be forfeited and will no longer vest and, where relevant, will be promptly repaid by you if the award or any portion of this award has already vested.
Continued Vesting following Rule of 65-Retirement-Eligible Event or Rule of 60 Retirement-Eligible Event. As a condition for continued vesting of your PSUs (including any PSUs resulting from dividend equivalent rights) following a Rule of 65 Retirement-Eligible Event or a Rule of 60 Retirement-Eligible Event, your Employer may require you to periodically certify your compliance with the covenants set forth in Section 3 of these Terms and Conditions as more fully described in such Section.
“Rule of 60” as revenue growth (expressed as a percentage) plus adjusted EBITDA margin (calculated as described in clause (vii)). The non-GAAP financial measures presented in this press release and discussed on the related teleconference call provide investors with greater transparency to the information used by management in its financial and operational decision-making.
During the teleconference call, we also refer to a forward-looking estimate of our implied revenue growth plus adjusted EBITDA margin for 2021, or the “Rule of 60.”
Because we are unable to reconcile forward-looking adjusted EBITDA margin to net income margin without unreasonable effort, we are unable to reconcile the “Rule of 60” to a comparable GAAP measure without unreasonable effort.
Prior to 2023, PSUs were subject to pro-rata vesting. Beginning in 2023, PSUs are subject to three-year cliff vesting with a provision of early retirement upon satisfaction of the Rule of 60.
A Qualifying Termination means any voluntary or involuntary termination (other than for death, disability, or “cause”) after the executive has met certain specified age and/or service requirements. For awards granted before February 15, 2022, the named executive officers must have at least 10 years of service and his or her age and years of service must add up to at least 60 (sometimes referred to in prior years as “Rule of 60”). For awards granted on or after February 15, 2022, the named executive officers must have at least 10 years of service and reached at least age 50.
“Rule of 60” the sum of the Participant’s age plus Service being equal to 60 or more. For the purposes of this definition the Participant’s age and his Service shall be whole calendar years as at December 31, 2015.
“Retirement” means the Cessation of Employment after: (a) having attained age 58 or older, or (b) in respect of those Participants who satisfied the Rule of 60 at December 31, 2015, having attained age 55 or older and having completed at least 10 years of Service.
In the event of a disability or for a participant who meets the Rule of 60, a participant may also opt to receive a withdrawal in the form of a single lump sum or in quarterly or annual installments for up to 15 years.
Except as provided in Paragraph 3(k)(ii) hereof, if Participant (1) meets the Rule of 60 (as defined below), and (2) is not, at any time up to and including each Scheduled Vesting Date (or until such earlier date on which Subsection 3(e) hereof applies), employed, directly or indirectly, by a Significant Competitor of the Company (as defined in Subsection 3(l) hereof), the outstanding portion of the Award will continue to be settled on schedule subject to all other provisions of this Agreement. For purposes of this Agreement, Participant will meet the Rule of 60 if Participant is (A) at least age 50 and has completed at least five full years of service with the Company and Participant’s age plus the number of full years of service with the Company equals at least 60, or (B) under age 50, but has completed at least 20 full years of service with the Company and Participant’s age plus the number of full years of service with the Company equals at least 60 (the “Rule of 60”). Participant’s age and years of service will each be rounded down to the nearest whole number when determining whether the Rule of 60 has been attained.
"Career Retirement" means voluntary termination of employment as a DB Employee by a Participant who has complete years of age plus number of complete years of service as a DB Employee equalling 60 or more (" Rule of 60 "), provided however that the Participant must have five or more complete years of consecutive service (the " Consecutive Service Requirement ") as a DB Employee on or before the most recent date of termination of employment and provided the Participant has made a valid Election to Career Retire in connection with the relevant Award. If the Consecutive Service Requirement is satisfied, the number of complete years of service used to calculate the Rule of 60 may also include any period of employment as a DB Employee prior to a break in continuous service. Where a Participant evidences to the satisfaction of the Committee (in its absolute discretion) within 3 months of the date the Participant becomes a DB Employee (or such longer period as the Committee may permit) that, had the Participant remained employed by the employer who employed the Participant immediately before the Participant became a DB Employee (the " Previous Employer "), the Participant would have been entitled to retire at some point within five years of the time the Participant became a DB Employee and retain outstanding awards made to the Participant by the Previous Employer, under a provision which is broadly equivalent to the Career Retirement provisions of this Plan (and which takes account of the age of the Participant), then the Rule of 60 shall not apply for the purpose of this definition but the Consecutive Service Requirement and the requirement to make an Election shall still apply. Where such a Participant who becomes a DB Employee on or after 1 January 2016 further so evidences that the Participant would, at the time of ceasing employment with the Previous Employer, have been entitled to retire and retain outstanding awards made to the Participant by the Previous Employer, under such a provision, then in addition to the Rule of 60 not applying, the Consecutive Service Requirement shall be reduced to three or more years of consecutive service (the " Reduced Consecutive Service Requirement ").
The “Rule of 60” generally refers to a guideline or benchmark applied in various fields to simplify complex calculations or decisions. It is often used to refer to achieving a cumulative measure, often in retirement planning, where age plus years of service equals 60, allowing individuals to qualify for specific benefits. It can also appear in other contexts where the sum of two or more quantities needs to meet or exceed 60 to achieve a goal or standard.
You should use the Rule of 60 primarily in contexts where it is a defined guideline or qualification standard, particularly in:
When writing about the Rule of 60, clarity and context are key. Here’s a basic format:
Define the Rule: Start by explaining what cumulative elements are combined to meet the Rule of 60.
Clarify the Context: Explain the specific context in which the Rule of 60 is being applied.
Details and Exceptions: Mention any exceptions or additional requirements needed to meet the rule.
Contracts or agreements that typically feature the Rule of 60 include:
Employment Contracts: Especially those detailing early retirement options or benefits tied to age and years of service.
“The employee shall qualify for early retirement benefits provided the sum of the employee’s age and years of service equals or exceeds 60.”
Pension Plan Agreements: Offering specifics on when participants may begin accessing their benefits.
Collective Bargaining Agreements: Particularly in sectors or unions where retirement terms are negotiated.
Insurance Policies: Sometimes as a metric for eligibility for certain age and service-related benefits.
Each use context should be specified within the contract to clearly define how the Rule of 60 is applied and any conditions that accompany its implementation.
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