Early Retirement


Depending upon which plan you choose, your benefit may be subject to early retirement reductions.
 
FRS Pension Plan FRS Investment Plan
If you leave before reaching normal retirement and elect to begin receiving your vested benefit, it will be subject to an early retirement reduction. Your benefit will be reduced 5% for each year your age at retirement is under your normal retirement age.
 
If you enrolled in the FRS prior to July 1, 2011, normal retirement is age 62 with 6 years of service or 30 years of service, regardless of age. For Special Risk Class members, normal retirement is age 55 with at least 6 years of Special Risk service, or 25 years of Special Risk service, regardless of age, or age 52 with 25 years of Special Risk service and military service.
 
If you enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33 years of service, regardless of age. For Special Risk Class members, normal retirement is age 60 with at least 8 years of Special Risk service, or 30 years of Special Risk service, regardless of age, or age 57 with 30 years of Special Risk service and military service.
 
For example, if you enrolled in the FRS on or after July 1, 2011 and are a Regular Class member and want to retire early at age 57 with 20 years of service (8 years before age 65) and start receiving your benefit, your first year benefit will be reduced 40% (8 years x 5% = 40%).
 
In some circumstances taking an early, but reduced, retirement benefit may be better than deferring payout to normal retirement age because you draw more years of benefits, get more years of the 3% annual cost-of-living adjustment (adjustment only applicable for FRS service earned prior to July 1, 2011) and are immediately eligible to receive the Health Insurance Subsidy payment. However, your benefits will generally be lower than if you were to stay working until normal retirement eligibility.
 
Be sure to review the vesting requirements for additional information.
 
There are no early retirement reductions. You will have access to the full value of your vested account balance when you leave FRS employment, regardless of your age when you leave.
 
You should consult with one of the planners at the MyFRS Financial Guidance line or a tax specialist to get an explanation of the tax implications of early retirement relevant to your personal situation (see the Taxability of Benefits section).