Payment Options > Early Reduced

If you are at least age 55, active (still working, not deferred), with at least 15 but less than 30 years of service credit, you may take an early reduced retirement. You must have earned creditable service in each of the five school fiscal years immediately before your retirement effective date. Be sure to verify you meet these requirements before you terminate employment - review your annual Member Statement or contact ORS. 

Calculate your straight life pension, and then reduce it by one-half of one percent (0.005) for each month and fraction of a month you take your pension before age 60 (6 percent per year).

Additional notes about the early reduced option.

• The reduction in your pension is permanent. Expect to receive the same amount throughout your lifetime, with the exception of postretirement increases.
• Choosing the early reduced retirement has no effect on insurance eligibility, coverage, or premium subsidy. Insurance benefits are the same whether you take a full retirement or early reduced retirement.
• The 3 percent postretirement increase for MIP retirees will be based on the initial dollar amount of the early reduced pension amount.
• The early reduced pension calculation is performed before determining your pension amount under a survivor option or the equated plan.
• For early reduced option purposes, your retirement effective date is the first of the month following the date you last earned any reportable compensation (as defined under Your Final Average Compensation ). In other words, you must work sometime during the month before your retirement effective date, unless the summer birthday provision applies.