Early Retirement
You may retire as early as age 60 if you have at least five years of credited service. Since you can expect to receive payments for longer than if you had retired at 65, the pension is reduced in proportion.
- If your credited service is less than 30 years, your benefit is calculated by the same formula as for a normal retirement, then reduced by 2/10 of one percent for each month the early retirement date is short of normal retirement.
- If your credited service is 30 years or more, your pension is not reduced.
See formula for Normal Retirement
Credited Service (CS)
is the period of years and months you have served for which assessments have been paid.
Highest average compensation (HAC)
is generally the average of the highest-paid seven out of eight consecutive 12-month periods in your ministry on which assessments have been paid.
(To estimate your CS and HAC, consult the Personal Information Summary sent to you each year)
Help
Email: Request a pension estimate
Phone: (866) 802-6333
Monday - Friday
8:30 a.m. to 4:45 p.m. (Eastern)
Sample calculation
When The Rev. J. Fisher retires at age 62 (36 months short of normal retirement) with 25 years of credited service, the pension is reduced by .2% times 36, or 7.2%.
With 25 years of credited service and a highest average compensation of $60,000 the annual pension is calculated in two steps:
- Step 1
The formula for normal retirement is used:
2.75% x 25 x $10,000 = $6,875 + 1.6% x 25 x $50,000 = $20,000 ------------------------------------- = Basic annual pension = $26,875 - Step 2
The basic annual pension is then reduced by .2% for each month short of retirement, in this case 36 months or 7.2%:
Basic annual pension = $26,875
Reduction (7.2 % of $26,875) = $1,935
Early retirement pension = $24,940