Benefit Reduction for Early Retirement
Members in regular retirement plans can retire with full benefits at the age specified by their plan, or choose to retire as early as age 55 with a reduction for early retirement.*
*Tier 1 members can retire at age 55 without a benefit reduction.
| Retirement System and Tier | Retirement Age for Full Benefit |
|---|---|
| ERS Tiers 2, 3, 4 and 5 | 62 |
| ERS Tier 6 | 63 |
| PFRS Tiers 2, 3 and 5 | 62 |
| PFRS Tier 6 | 62 for service retirement benefit 63 for vested retirement benefit |
Benefit reductions are prorated by month. The closer you are to your full retirement age at retirement, the less the reduction will be. It is important to know that once you retire with a reduced benefit, the reduction is permanent — it does not end when you turn 62 (63 for Employees’ Retirement System (ERS) Tier 6 members and Police and Fire Retirement System (PFRS) Tier 6 members receiving a vested benefit).
Benefit reductions do not apply to ERS Tier 2, 3 or 4 members who retire between 55 and 62 with 30 or more years of service credit. Tier 5 Uniformed Court Officers and Peace Officers employed by the Unified Court System with 30 or more years of service can also retire between 55 and 62 with an unreduced benefit.
Retirement benefits of all other ERS Tier 5 members, ERS Tier 6 members and PFRS Tier 2, 3, 5 and 6 members not in a special 20- or 25-year plan will be reduced for early retirement — even if they have 30 years of service credit.
ERS Tiers 2, 3 and 4, PFRS Tiers 2, 3 (Article 11), 5 and 6
Reductions are prorated by month (Example: If you retire at age 58½, your pension will have a permanent reduction of 16.5%).
| Age at Retirement | Percentage of Reduction |
|---|---|
| 62 | 0 |
| 61 | 6 |
| 60 | 12 |
| 59 | 15 |
| 58 | 18 |
| 57 | 21 |
| 56 | 24 |
| 55 | 27 |
These reductions do not apply to Employees’ Retirement System (ERS) Tier 2, 3 and 4 members and to Tier 5 Uniformed Court Officers and Peace Officers employed by the Unified Court System retiring with 30 or more years of service credit.
Employees’ Retirement System (ERS) Tier 5
Reductions are prorated by month (Example: If you retire at age 58½, your pension will have a permanent reduction of 20.83%).
| Age at Retirement | Percentage of Reduction |
|---|---|
| 62 | 0 |
| 61 | 6.67 |
| 60 | 13.33 |
| 59 | 18.33 |
| 58 | 23.33 |
| 57 | 28.33 |
| 56 | 33.33 |
| 55 | 38.33 |
Employees’ Retirement System (ERS) Tier 6
Reductions are prorated by month (Example: If you retire at age 58½, your pension will have a permanent reduction of 29.25%).
| Age at Retirement | Percentage of Reduction |
|---|---|
| 63 | 0 |
| 62 | 6.5 |
| 61 | 13 |
| 60 | 19.5 |
| 59 | 26 |
| 58 | 32.5 |
| 57 | 39 |
| 56 | 45.5 |
| 55 | 52 |
Tier 3 State Correction Officer and Security Hospital Treatment Assistant (SHTA) Titles
Benefit reductions for Tier 3 members in these titles are different from those above. Please refer to the Service Retirement Benefits section in the booklet for Tier 3, 5 and 6 Correction Officers/SHTAs (VO1526) for the reduction percentages and how they affect the benefits provided to members in these titles.
(Rev. 4/12)