Special 20- and 25-Year Plans

For PFRS Tier 2, 3 (Article 11), 5 and 6 Members, (Sections 384, 384-d and 384-e)

Retiring with an Outstanding Loan

Special 20- and 25-Year Plans
For PFRS Tier 2, 3 (Article 11), 5 and 6 Members
(Sections 384, 384-d and 384-e)

Tier 2 and 3 (Article 11) Members

If you retire with an outstanding loan, the annuity portion of your retirement benefit will be permanently reduced. You cannot pay off your loan once you retire. The amount of your annuity reduction will be based on your age, your loan balance at retirement and the type of retirement (service or disability). The loan application and Retirement Online provide examples of how much your reduction would be.

Tier 5 and 6 Members

If you retire with an outstanding loan, your retirement benefit will be permanently reduced. You cannot pay off your loan once you retire. The amount of your pension reduction will be based on your age, your loan balance at retirement, and the type of retirement (service or disability).

Benefit Reduction Examples

Here are examples of how your service retirement bene­fit would be permanently reduced by an outstanding loan balance at retirement. The approximate reductions are for calendar year 2024. The amount of the reduction changes annually.

Age at RetirementOutstanding Loan BalanceAnnual Pension Reduction
45$5,000$255
$10,000$510
55$5,000$289
$10,000$578
65$5,000$352
$10,000$670