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Early retirement reduction tables

Legislation passed in 2013 affects the benefit for those retiring before the normal retirement age (NRA) of 66.

The changes impact early retirement reduction factors, which is the reduction for starting the pension benefit before NRA (similar to Social Security). The new reduction factors will be phased in over five years, beginning July 1, 2015.

The changes have a negative effect primarily on those starting their benefit between ages 55 and 62. If your plan was to wait until age 62 or later to start your pension benefit, the new factors will have little impact on your benefit at those ages. If you will be age 55 and begin drawing your benefit prior to July 1, 2015, you will avoid the impact of this law change. If you plan to wait until age 62 or later, the new calculations will have little impact. However, teachers who wait until age 62 and have 30-plus years of service will see an increase in benefits.

The chart shows the impact of the law on various scenarios. The changes primarily affect those starting their benefit between ages 55 and 62.

If you begin your TRA pension ... Retiring before 6/30/2015 Retiring between 7/1/2015 and 6/30/2020 (phase-in period) Retiring after 7/1/2020
Between ages 55 and 62 Current calculations in effect Phased-in benefit reduction Full impact of benefit reduction
Age 62 to 66 with less than 30 years of service Current calculations in effect Negligible impact to benefit Negligible impact to benefit
Age 62 to 66 with at least 30 years of service Current calculations in effect Phased-in benefit improvement Full impact of benefit improvement
After age 66 (normal retirement age) No benefit reduction No benefit reduction No benefit reduction

Estimates generated prior to September 1, 2013, with an effective date of retirement of July 1, 2015, or later may no longer be accurate.

Log in to your TRA online account to get a new estimate. Also available is an extensive
Q&A on the new calculations.

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