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The Rule of 80 is an
optional early retirement provision in which an employee may retire with
an unreduced benefit if the sum of age and years of service equal 80.
Example:
Age Jane Employee begins work: 20
Jane's Years of Service: 30
Jane's retirement age: 50
30 Years of Service + Age 50 = 80
Jane Employee is eligible for an unreduced LAGERS benefit at
age 50 under the Rule of 80.
Regular unreduced retirement age for general employees is age 60, or
age 55 for police officers and fire fighters. All employees may retire
up to 5 years early. Without Rule of 80, the reduction in a member's
monthly benefit is one half of one percent per month that the member
retires early (6% per year). The Rule of 80 allows eligible members to
retire prior to their regular retirement age without a reduction.
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