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Early Reduced

If you are at least age 55, active (still working, not deferred), with at least 15 but fewer than 30 years of service (YOS) credit, you may take an early reduced retirement. Be sure to verify you meet all requirements detailed in Qualifying for Your Pension before you terminate employment. Check with the Michigan Office of Retirement Services ahead of time if you're not certain.

Calculate your straight life pension, and then reduce it by one-half of 1% (0.005) for each month and fraction of a month you take your pension before age 60 (6% 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 post-retirement 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.
  • Your 3% post-retirement increases will be based on the dollar amount of the early reduced pension you receive.  
  • The early reduced pension calculation is performed before determining your pension amount under a survivor option or the equated plan.