Coordinated Plan for ERS Tier 6 Members

(Article 15)

Retiring Before Age 63

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If you retire between the ages of 55 and 63, your benefit will be reduced. The percentage of the benefit reduction is prorated based on your exact age at retirement.

Age at Retirement Percentage of Reduction
55 52.00
56 45.50
57 39.00
58 32.50
59 26.00
60 19.50
61 13.00
62 6.50
63 0

It is important to know that once you retire with a reduced benefit, the reduction is permanent — it does not end when you turn 63.

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Examples:

*52 percent benefit reduction
At age 55, with 19 years of service and an FAS of $35,000:
$35,000 × 1.66% × 19 years = $11,039 per year
  − $5,740*
= $5,299 per year or $442 per month
At age 55, with 20 years of service and an FAS of $35,000:
$35,000 × 1.75% × 20 years = $12,250 per year
  − $6,370*
= $5,880 per year or $490 per month
At age 55, with 32 years of service and an FAS of $35,000:
$35,000 × 1.75% × 20 years = $12,250
$35,000 × 2% × 12 years = $8,400
= $20,650 per year
  − $10,738*
= $9,912 per year or $826 per month