Which statement about the relationship between service credits and monthly NEBF retirement benefits is true?

• A. The monthly benefit is fixed and does not depend on service credits.
• B. The monthly benefit depends only on age.
• C. The monthly benefit depends on hours worked.
• D. The monthly benefit equals the number of service credits times the per-credit rate.

Answer: (D)

Service credits are the units used to measure your time in the NEBF. Each credit has a fixed value, known as the per-credit rate, set by the plan. Your monthly retirement benefit is calculated by multiplying the total number of service credits by that per-credit rate. So, the more credits you have, the larger the monthly benefit, and the benefit is not determined solely by age or by hours worked. This is why the statement that the monthly benefit equals the number of service credits times the per-credit rate is the correct description.