Delayed Subsidy Examples

Note: These examples assume that the retiree first worked before July 1, 2008, and meets all pension eligibility requirements.

Service Credit Impact on Insurance Subsidy Qualification MIP - 46 with 30
Service Purchase before July 1, 2008	Service Purchase on or after July 1, 2008	Earned Service	Age at Termination	Subsidy Begins	Why?
0 years	3 years	27 years	52	Wait 3 years	3 years of service (YOS) credit were purchased after July 1, 2008
3 years	0 years	27 years	52	Immediately	3 YOS credit were purchased before July 1, 2008
0 years	3 years	27 years	59	Immediately	The member meets all eligibility requirements for an early reduced retirement*
0 years	5 years	27 years	52	Wait 3 years	3 years needed to reach the minimum requirements for 30 years and out
0 years	15 years	15 years	46	Wait 9 years	Must wait until age 55 when member would be eligible for an early reduced retirement*

Service Credit Impact on Insurance Subsidy Qualification Basic and MIP Members - Early Reduced
Service Purchase before July 1, 2008	Service Purchase on or after July 1, 2008	Earned Service	Age at Termination	Subsidy Begins	Why?
0 years	3 years	15 years	55	Immediately	The purchased service was not needed to reach minimum eligibility for early reduced retirement*
0 years	3 years	12 years	55	Wait 3 years	3 YOS were purchased after July 1, 2008
0 years	3 years	12 years	59	Wait 1 year	Must wait until age 60
0 years	5 years	12 years	55	Wait 3 years	3 YOS needed to reach the minimum eligibility for early reduced retirement*
0 years	2 years	13 years	55	Wait 2 years	2 YOS were purchased after July 1, 2008
2 years	0 years	13 years	55	Immediately	2 YOS were purchased before July 1, 2008

Service Credit Impact on Insurance Subsidy Qualification Basic - 55 with 30
Service Purchase before July 1, 2008	Service Purchase on or after July 1, 2008	Earned Service	Age at Termination	Subsidy Begins	Why?
6 years	4 years	20 years	55	Immediately	The member meets all eligibility requirements for an early reduced retirement*
3 years	1 year	26 years	55	Immediately	The member meets all eligibility requirements for an early reduced retirement*
5 years	5 years	25 years	55	Immediately	5 YOS were purchased before July 1, 2008, giving member 30 YOS
0 years	15 years	15 years	55	Immediately	The member meets all eligibility requirements for an early reduced retirement*
0 years	5 years	25 years	52	Wait 3 years	5 YOS were purchased after July 1, 2008 (Member eligible for pension payment at age 55)*