Reduction for Early Retirement
Tier 2, 3, 4 and 5 members in regular retirement plans can retire at age 62 with full benefits or choose to retire as early as age 55 with a reduction for early retirement. Benefit reductions are prorated by month. The closer your retirement date is to age 62, 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.
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. Retirement benefits of ERS Tier 5 members and PFRS Tier 2, 3 and 5 members not in special 20- or 25-year plans who retire before age 62 will be reduced — even if they have 30 years of service credit.
ERS Tier 2, 3 and 4, PFRS Tier 2 and 3 Article 11, and PFRS Tier 5 Benefit Reductions
Reductions are prorated by month (example: an ERS member retiring at age 58½ with less than 30 years of service credit, will have a permanent reduction of 16.5 percent).
- Age 62 = 0%
- Age 61 = 6%
- Age 60 = 12%
- Age 59 = 15%
- Age 58 = 18%
- Age 57 = 21%
- Age 56 = 24%
- Age 55 = 27%
ERS Tier 5 Benefit Reductions
Reductions are prorated by month (example: if you retire at age 58 ½ your pension will have a permanent reduction of 20.83%).
- Age 62 = 0%
- Age 61 = 6.67%
- Age 60 = 13.33%
- Age 59 = 18.33%
- Age 58 = 23.33%
- Age 57 = 28.33%
- Age 56 = 33.33%
- Age 55 = 38.33%
Tier 3 and 5 State Correction Officer and Security Hospital Treatment Assistant Titles
Early age reductions for these titles are different from those above. Please refer to the Service Retirement Benefits section in the booklet for Tier 3 and 5 Corrections Officers/SHTAs (VO1526) for the reduction percentages and how they affect the benefits provided for members in these titles.
(Rev. 3/10)
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