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Service Retirement

Eligibility for service retirement is determined by your age and/or years of service. Retirement benefits are calculated using a predetermined formula and are payable for your life.

Benefit plans are also available that allow you to provide varying degrees of financial protection for your beneficiary. You must apply for PEERS benefits prior to your effective retirement date.

Applying for Service Retirement »

Types of Service Retirement

Regardless of the type of service retirement for which you qualify, you must select a benefit plan to direct the payment of your monthly benefits.

Normal (Full) Retirement

Normal, or full, retirement benefits are non-reduced benefits and are calculated with a 1.61% benefit factor.

If you are not sure if you are eligible for normal retirement, or are curious to know how many years of service you have, you can log in to Web Member Services to view your membership information.

  • You are eligible if you properly terminate PEERS-covered employment and meet minimum service and age requirements.
  • Benefits are calculated using a formula set by law and are payable for life unless you return to full-time, PEERS-covered employment, or work at a PEERS-covered employer on a temporary-substitute or part-time basis in excess of the limit explained on this website and in your Member Handbook.
  • Benefit plans are available that allow you to provide varying degrees of financial protection for your beneficiary.
  • You must apply for service retirement benefits by filing the Service Retirement Application prior to your retirement date.
  • If you are considering retirement due to health reasons, you may be eligible for PEERS disability benefits.
  • If you retire prior to age 62, you can also choose to accelerate, or increase, your PEERS benefit until age 62, with an actuarial reduction applied to your benefit at age 62. Learn More »

Eligibility

You are eligible for normal (full) retirement benefits calculated with a 1.61% benefit factor at:

  • Age 60 with at least five years of service
  • Any age with at least 30 years of service*
  • Rule of 80 when the sum of your age plus your years of service equals 80 or more*

(* Also qualifies for a temporary benefit (0.8%) until age 62)

Normal (Full) Retirement Calculation »

25-and-Out Early Retirement

Early retirement benefits under the 25-and-Out provision allow you to retire early with reduced lifetime retirement benefits. You must have at least 25 years of service to qualify. The benefit factors for 25-and-Out are based on your years of service and range from 1.51% to 1.59%.

  • You are eligible if you properly terminate PEERS-covered employment and meet minimum service and age requirements.
  • Benefits are calculated using a formula set by law and are payable for life unless you return to full-time, PEERS-covered employment, or work at a PEERS-covered employer on a temporary-substitute or part-time basis in excess of the limit explained on this website and in your Member Handbook.
  • Benefit plans are available that allow you to provide varying degrees financial protection for your beneficiary.
  • You must apply for service retirement benefits by filing the Service Retirement Application prior to your retirement date.
  • If you are considering retirement due to health reasons, you may be eligible for PEERS disability benefits.
  • If you retire prior to age 62, you can also choose to accelerate, or increase, your PEERS benefit until age 62, with an actuarial reduction applied to your benefit at age 62. Learn More »

Eligibility

You are eligible for early retirement benefits calculated with the 25-and-Out formula if you:

  • Are under age 55 with at least 25 but fewer than 30 years of service
  • Do not qualify for the Rule of 80 (when your age plus your years of service equals 80 or more)

25-and-Out Early Retirement Calculation »

Age-Reduced Early Retirement

Early retirement benefits under the Age-Reduced provision allow you to retire early with reduced lifetime retirement benefits. The benefit factor is 1.61%, with a reduction factor applied based on your age at retirement. This means that Age-Reduced benefits will vary based on your age at retirement. The younger you are, the more your benefits are reduced. Your benefit amount will be higher if you wait and file for Normal (Full) service retirement benefits.

  • You are eligible if you properly terminate PEERS-covered employment and meet minimum service and age requirements.
  • Benefits are calculated using a formula set by law and are payable for life unless you return to full-time, PEERS-covered employment, or work at a PEERS-covered employer on a temporary-substitute or part-time basis in excess of the limit explained on this website and in your Member Handbook.
  • Benefit plans are available that allow you to provide varying degrees of financial protection for your beneficiary.
  • You must apply for service retirement benefits by filing the Service Retirement Application prior to your retirement date.
  • If you are considering retirement due to health reasons, you may be eligible for PEERS disability benefits.
  • If you retire prior to age 62, you can also choose to accelerate, or increase, your PEERS benefit until age 62, with an actuarial reduction applied to your benefit at age 62. Learn More »

Eligibility

You are eligible for Age-Reduced early retirement benefits if you:

  • Are age 55 with at least five years of service
  • Do not qualify for the Rule of 80 (when your age plus your years of service equals 80 or more)

Age-Reduced Early Retirement Calculation »

Partial Lump Sum Option (PLSO)

If you work three years past normal retirement, you can choose a one-time, Partial Lump Sum Option (PLSO) payment at retirement with reduced lifetime benefits. The reduction is based on the amount of the payment and your age at retirement.

Most, or all, of a PLSO payment is considered taxable income by the IRS. PEERS is required by the IRS to withhold 20% for federal taxes. You may be able to defer the tax liability by rolling the PLSO payment to a qualified retirement account. Learn more about PLSO Tax Liability »

  • You are eligible if you properly terminate PEERS-covered employment and meet minimum service and age requirements.
  • Benefits are calculated using a formula set by law and are payable for life unless you return to full-time, PEERS-covered employment, or work at a PEERS-covered employer on a temporary-substitute or part-time basis in excess of the limit explained on this website and in your Member Handbook.
  • Benefit plans are available that allow you to provide varying degrees financial protection for your beneficiary.
  • You must apply for service retirement benefits by filing the Service Retirement Application prior to your retirement date.
  • If you are considering retirement due to health reasons, you may be eligible for PEERS disability benefits.

Eligibility

You are eligible for PLSO if you:

  • Are at least age 63 with eight or more years of service
  • Have 33 or more years of service
  • Qualify for Rule of 86 (when your age plus your years of service equals 86 or more)

PLSO Calculation »

The Accelerated Payment Plan (APP)

If you retire prior to age 62, you can also choose to accelerate, or increase, your PEERS benefit until age 62, with an actuarial reduction applied to your benefit at age 62. Members who choose the Accelerated Payment Plan (APP) usually intend to apply for Social Security benefits at age 62, replacing the reduction in their PEERS benefit with income from Social Security. Choosing the APP does not mean you will receive any extra income from PEERS over your lifetime. It simply means you will receive more of your benefit prior to age 62. You may not choose the APP and the Partial Lump-Sum Option (PLSO).

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Rule of 80

Rule of 80 is a benefit provision used to determine if you are eligible for Normal (Full) PEERS service retirement benefits. You have reached Rule of 80 when the combination of your age and your years of PEERS service equal 80 or more.

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