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Retirement: Early
You are eligible to draw an early retirement pension anytime after attainment of age 50 and completion of 15 or more years of service. An early retirement pension will be calculated on your final average monthly earnings and the number of years of service but will be reduced by 5/12 percent (5% annually) for each month the retirement precedes age 55, the normal retirement date. The amount of reduction is permanent so you will receive the lower benefit for the rest of your life.
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Example of Early Retirement Benefits
The following is a calculation of monthly retirement benefits for a 51-year-old member who earned $30,750 this year, $29,250 last year, and has 22 years of service.
Final average monthly earnings:
current year earnings |
$30,750 |
prior year earnings |
+$29,250 |
divided by 24 months = $2,500 |
$60,000 |
Service accrual factor:
22 years of service x 3% = |
66.0% |
Accrual factor is: |
66.0% |
The Calculation:
Average monthly earnings: |
$2,500 |
Multiplied by factor: |
66.0% |
Monthly pension benefit = |
$1,650.00 |
Early Retirement Reduction:
Years prior to normal retirement |
4 |
Multiplied by annual reduction |
5.0% |
Total Reduction = |
20% |
Final Calculation:
Normal retirement benefit |
$1,650 |
Multiplied by total reduction |
20.0% |
Early retirement reduction amount |
$330 |
Early retirement benefit: $1,650 - $330 = $1,320 |
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Optional Retirement Benefits
Early Retirement
Vested Retirement
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