(a) Annual pension. Each participant who retires on an early retirement date is entitled to receive an annual pension equal to the normal retirement pension that would have been paid based on years of credited service reduced by an early retirement reduction factor.
(b) Reduction factors. The early retirement reduction factors are:
Years Early | Reduction Factor | Percentage of Normal Retirement Benefit |
Years Early | Reduction Factor | Percentage of Normal Retirement Benefit |
1 | 2% | 98% |
2 | 5% | 95% |
3 | 9% | 91% |
4 | 14% | 86% |
5 | 20% | 80% |
6 | 28% | 72% |
7 | 36% | 64% |
8 | 44% | 56% |
9 | 52% | 48% |
10 | 60% | 40% |
The early retirement reduction factors increase by 6% for each year that retirement precedes 10 years before the normal retirement date.
(c) Applied each year. The early retirement reduction factor shall be applied for each year that a participant's date of retirement precedes the normal retirement date.
(d) Normal retirement date determined by Personnel Officer. The Personnel Officer shall determine the normal retirement date by assuming that the participant had continued to earn credited service and the early retirement reduction factor by prorating to the nearest one-twelfth of a year.
(e) Reduction of benefits prior to February 25, 2002. For any employee who is a participant as of February 25, 2002, in no event will the application of the early retirement reduction factors in subsection (b) reduce the participant's pension benefit from what the pension benefit would have been under the early retirement reduction factors in effect immediately prior to February 25, 2002.
(1985 Code, Art. 7, § 6-204) (Bill No. 90-01)