Early retirement allows you to retire at a younger age or with fewer years of membership service than required under service retirement. However, early retirement means you have the potential to receive your benefit over a longer period of time. Therefore, your benefits are reduced to adjust for the expected additional payments.
To be eligible for early retirement you must meet one of the following requirements:
- If you were hired before July 1, 2011: 25 years of membership service at any age; or age 50, with at least 5 years of membership service
- If you were hired on or after July 1, 2011: age 55 with 5 years of service only.
EARLY RETIREMENT BENEFIT CALCULATION
Early retirement benefits are calculated using the same basic formula as service retirement benefits. The only difference is your service retirement benefit will be multiplied by an early retirement factor (ERF).
Early Retirement Benefit Formula
MEMBERSHIP SERVICE FACTOR x HIGHEST AVERAGE COMPENSATION x YEARS OF SERVICE x ERF
Your Membership Service Factor if you were hired before 7/1/2011 is:
1.7857% if you have less than 25 years of membership service.
2% if you have 25 or more years.
Your Membership Service Factor if you were hired on or after 7/1/2011 is:
1.5% if you have more than 5 but less than 10 years.
1.7857% if you have more than 10 but less than 30 years.
2% if you have 30 or more years.
The appropriate ERF will be determined by MPERA. When both "Age" and "Years of Membership Service" apply to your situation, MPERA will use the larger ERF (resulting in a smaller deduction) to calculate your initial monthly benefit.