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Early Reduced

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Michigan Office of Retirement Services

Early Reduced

Payment Options - Early Reduced

If you're at least age 55, active (still working, not deferred), with at least 15 but fewer than 30 years of service (YOS), you may qualify for an early reduced pension. Be sure to verify you meet these requirements before you terminate employment — review your service credit in miAccount or contact the Michigan Office of Retirement Services. 

Calculate your straight life pension, and then reduce it by 1/2% (0.005) for each month you take your pension before age 60 (6% per year). Run early reduced pension estimates in miAccount. 

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 post-retirement increases.
  • For most members, choosing the early reduced retirement has no effect on insurance eligibility, coverage, or premium subsidy benefit. Insurance benefits are the same whether you take a full retirement or early reduced retirement.
  • If you have the graded premium subsidy (MIP Plus and Pension Plus only) and you have earned at least 25 YOS as of your retirement effective date, you will qualify for the maximum subsidy. If you have fewer than 25 years of earned service, you will qualify for the graded subsidy at age 60 based on your YOS as of your retirement effective date.
  • The 3% post-retirement 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 unless the summer birthday provision applies.