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.

Pension Calculation

  • Calculate the pension payable under Service Retirement
  • Apply the appropriate permanent reduction to determine the early reduced pension amount payable under Early Retirement

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:

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)