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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:
| 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 |
| *52 percent benefit reduction | |