Early Service Retirement
Tier C: Group I (Employee and Teacher) Members hired on or after July 1, 2011
Members with at least 30 years of Creditable Service may retire between the ages of 60-64.
Pension Calculation
Reduced Pension
Group I members who receive an Early Retirement pension will experience a permanent reduction in their pension amount.
The reduction applied to an Early Retirement pension is ¼ of one percent for each month prior to age 65 the pension commences. Different provisions apply to members with Split Benefits.
Pension Calculation Example:
A Group I member retires with 30 years of Creditable Service at age 60 with an Average Final Compensation of $40,000.
- Age 60 is five years before age 65 (five years of early retirement)
- Five years of early retirement equals 60 months
- 60 months multiplied by ¼% equals = 15%
Early Retirement Benefit Example
Prior to attainment of full Social Security retirement age:
Average Final Compensation divided by 60 multiplied by Creditable Service
= approximate annual pension amount
$40,000 divided by 60 multiplied by 30 = $20,000 (approximate annual pension amount prior to Early Retirement reduction)
$20,000 x 15% = $3,000 (permanent early retirement reduction)
$20,000 - $3,000 = $17,000 (approximate early reduced annual pension amount payable prior to attainment of full Social Security retirement age)
Early Retirement Benefit Example
Following attainment of full Social Security retirement age:
Average Final Compensation divided by 66 multiplied by Creditable Service
= approximate annual pension amount
$40,000 divided by 66 multiplied by 30 = $18,182 (approximate annual pension amount prior to early retirement reduction)
$18,182 x 15% = $2,727 (permanent early retirement reduction)
$18,182 - $2,727 = $15,455 (approximate early reduced annual pension amount payable following attainment of full Social Security retirement age)