Early Service Retirement
Group II (Police and Fire) Members hired on or after July 1, 2011
Members with at least 25 years of Creditable Service may receive a reduced allowance after age 50.
- Calculate the pension payable under Service Retirement
- Apply the appropriate permanent reduction to determine the early reduced pension amount payable under Early Retirement
Group II 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 52.5 the pension commences. Different provisions apply to members with Split Benefits.
Pension Calculation Example:
A Group II member retires with 25 years of Creditable Service at age 50 with an Average Final Compensation of $40,000:
Pension Formula payable at age 52.5 or older:
Average Final Compensation multiplied by 2% multiplied by Creditable Service
= approximate annual pension amount
$40,000 multiplied by 2% multiplied by 25 = $20,000 (approximate annual pension amount prior to Early Retirement reduction)
- Age 50 is 2.5 years before age 52.5 (2.5 years of early retirement)
- 2.5 years of early retirement equals 30 months
- 30 months multiplied by ¼% equals = 7.5%
$20,000 x 7.5% = $1500 (permanent reduction per year at age 50)
$20,000 – $1500 = $18,500 (approximate early reduced annual pension amount payable at age 50)