Rule of 80 and Rule of 90
Are you familiar with the “Rule of 80”?
Over the years, you may have heard it called “80 & out”. The “Rule of 80” (or “Rule of 90” for MSEP 2011 members) simply allows some members with many years of service to reach normal retirement age sooner than they otherwise would. If your years of service plus your age equal 80 or more (90 or more for MSEP 2011), then you may reach retirement eligibility sooner.
Here are some examples:
Age 51.5 years + 28.5 years of service = 80
Age 55 years + 35 years of service = 90
The Rule of 80 and the Rule of 90 are options for normal (unreduced) retirement benefits.
While the Rule of 80 and the Rule of 90 may allow you to retire at a younger age, you don’t have to. Keep in mind that the longer you work, the higher your monthly pension payment will be. Every member’s situation is different. Just because one option works for someone else, it does not necessarily mean it will be best for you. We encourage you to look at the requirements below and evaluate your options based on your own plan and your own circumstances.
Not sure if you are in MSEP, MSEP 2000, or MSEP 2011? See the What’s My Plan? section on our website for information about plan membership, retirement eligibility requirements, and other plan provisions.
Normal (unreduced) retirement eligibility requirements:
- Age 65 + 5 years of service or
- Age 60 + 15 years of service or
- “Rule of 80” – (at least age 48) when age + years of service = 80 or more
- Age 62 + 5 years of service or
- “Rule of 80” – (at least age 48) when age + years of service = 80 or more
- Age 67 + 5 years of service or
- “Rule of 90” – (at least age 55) when age + years of service = 90 or more at the time of termination
Early (reduced) retirement eligibility requirements:
Leaving state employment prior to normal retirement would change the assumptions used and the projected benefit amounts on any previous benefit estimates you may have received because you would have less credited service than previously assumed.
If you elect early retirement, your base benefit will be reduced by one-half of one percent (0.005) for each month your age at early retirement is younger than your normal retirement age.
MSEP: Age 55 with 10 years of service
MSEP 2000: Age 57 with 5 years of service
MSEP 2011: Age 62 with 5 years of service
If you are considering early retirement, we encourage you to contact us and make an appointment to visit with a MOSERS benefit counselor to discuss your options.