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If you retire with 30 or more years of service, your benefit will not be reduced as a result of retiring before age 62. With less than 30 years of service, your benefit will be reduced by the percentages shown below. The percentage of the benefit reduction is prorated based on your exact age at retirement.
| Age at Retirement | Percentage of Reduction |
|---|---|
| 55 | 27 |
| 56 | 24 |
| 57 | 21 |
| 58 | 18 |
| 59 | 15 |
| 60 | 12 |
| 61 | 6 |
| 62 | 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 62.
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Examples:
| At age 55, with 19 years of service and an FAS of $35,000: | |
| $35,000 × 1.66% × 19 years = | $11,039 per year |
| − $2,981* | |
| = | $8,058 per year or $672 per month |
| At age 55, with 20 years of service and an FAS of $35,000: | |
| $35,000 × 2% × 20 years = | $14,000 per year |
| − $3,780* | |
| = | $10,220 per year or $852 per month |
| At age 55, with 31 years of service and an FAS of $35,000: | |
| $35,000 × 2% × 30 years = | $21,000 per year |
| plus | |
| $35,000 × 1.5% × 1 year = | $525 per year |
| = | $21,525 per year** or $1,794 per month |
| *27 percent benefit reduction | |
| **With 30 or more years of service, no reduction at 55 | |