Early Service Retirement
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.
- Calculate the pension payable under Service Retirement
- Apply the appropriate permanent reduction to determine the early reduced pension amount payable under Early Retirement
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:
Pension Formula at age 65 and older:
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)
- 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%
$18,182 x 15% = $2727 (permanent reduction per year at age 60 and older)
$18,182 – $2727 = $15,455 (approximate early reduced annual pension amount payable at age 60)