Eligibility to retire: Tier One/Tier Two

You are vested in your Tier One or Tier Two account on the earliest date in which you complete at least 600 hours of service in each of five calendar years (the years do not have to be consecutive, but you cannot have a gap of more than five years). If you are an active member any time on or after reaching normal retirement age, you become a vested member regardless of years of service. Once you are vested in either the Tier One or Tier Two pension programs, you cannot lose your benefit rights unless you withdraw from the program.

An active member is defined as a member who is presently employed by a PERS-covered employer in a qualifying position and who has completed the six-month waiting period.

The age at which you can retire depends on your classification and whether you are a Tier One or Tier Two member.

Your benefit will be actuarially reduced because you will receive it over a longer period of time. You can view the Early Retirement Factors in Table 1 of PERS’ Actuarial Equivalency Factors (AEFs).

Should you retire early under the:

• Formula Plus Annuity method: The part of your benefit paid from employer funds will be reduced by an AEF based on the number of months and years you are below the age of 58 (age 60 if you are a Tier Two member and your classification is General Service, age 55 if your classification is P&F). 
  
• Full Formula method: Your entire benefit will be reduced by an AEF based on the number of months and years you are below the age of 58 (age 60 if you are a Tier Two member and your classification is General Service, age 55 if your classification is P&F). For example, if you are a Tier One or Tier Two member with less than 30 years of service and retire three years early (at 55 if you are Tier One; at 57 if you are Tier Two), your entire benefit will be reduced by approximately 23 percent because you will receive it over a longer period of time.
  
• Under a Money Match retirement calculation, PERS does not apply early retirement reduction factors that would apply under the Full Formula calculation. However, if you retire early under the Money Match calculation, there is an actuarial impact because payments will be received for a longer period since disbursements are based on life expectancy. Monthly payments will be less than they would be if you retired at normal retirement age.

*If you are a Tier One or Tier Two member who turned age 50 while in a P&F position, you may still retire with a reduced benefit even if you subsequently transferred to a General Service position.