- Hired before 2012, you can retire with an unreduced pension at 62 with 5 years, at 60 with 15 years, or at any age with 30 years.Summary Plan Description (2026), p. 18, Table 2; Office of Pensions workshop slides (Aug. 4, 2026), slide 7
- Hired in 2012 or later, you can retire with an unreduced pension at 65 with 10 years, at 60 with 20 years, or at any age with 30 years.Summary Plan Description (2026), p. 18, Table 2; Office of Pensions workshop slides (Aug. 4, 2026), slide 7
- There is no mandatory retirement age.SEPP FAQs (saved Nov. 12, 2026), 'Am I required to retire at a certain age?'
- You can take a reduced pension at 55 with 15 years, or at any age with 25 years. The cut is 0.2% a month (hired before 2012) or 0.4% a month (hired 2012 or later) for each month you are away from age 60 or from 30 years of service, whichever is closer. The cut is permanent.Summary Plan Description (2026), p. 18, Table 2; p. 24, Figure 2
- Example from the Office of Pensions' calculator: retiring at 55 with 23 years (hired before 2012) is 60 months under age 60, so the pension is cut 12%, from $2,380.56 to $2,094.89 a month.Office of Pensions workshop slides (Aug. 4, 2026), slides 19-20
- If you leave state employment before you can retire, you can start a vested pension only at 62 (hired before 2012) or 65 (hired 2012 or later), the first of the month after that birthday. There is no reduced early pension for former employees.Summary Plan Description (2026), p. 18, Table 2 (Vested); Office of Pensions workshop slides (Aug. 4, 2026), slide 9
Who can retire early
- Age 55 with 15 years: reduced for each month under age 60.
- 25 years at any age: reduced for each month of service short of 30 years.
Full pension: hired before 2012, age 62 with 5 years, age 60 with 15 years, 30 years at any age; hired 2012 or later, age 65 with 10 years, age 60 with 20 years, 30 years at any age. Summary Plan Description (2026), p. 18, Table 2 (Service); Office of Pensions workshop slides (Aug. 4, 2026), slide 7; SEPP FAQs (saved Nov. 12, 2026), 'Am I eligible to retire?'
The cut: the closer of two finish lines
Reduced pension: 0.2% a month (hired before 1/1/2012) or 0.4% a month (hired on or after 1/1/2012), times the number of months away from age 60 or from 30 years of service, whichever is closest. The reduction is permanent. Summary Plan Description (2026), p. 18, Table 2 (Early/Reduced); p. 24, Reduced Pension Calculation, Figure 2 ('The number of months away from 30 years of service or from the age of 60, whichever is closest'); Office of Pensions workshop slides (Aug. 4, 2026), slide 8
So the Office of Pensions measures two distances: months until you'd turn 60, and months until you'd have 30 years. It uses the shorter one. If you only qualify by age (55 with 15 to 24 years), it's the months to 60.
| Months short | Hired before 2012 | Hired 2012 or later |
|---|---|---|
| 6 months (0.5 years) | 1.2% | 2.4% |
| 12 months (1 year) | 2.4% | 4.8% |
| 24 months (2 years) | 4.8% | 9.6% |
| 36 months (3 years) | 7.2% | 14.4% |
| 48 months (4 years) | 9.6% | 19.2% |
| 60 months (5 years) | 12% | 24% |
Worked examples
Our illustrations, on the rules above, for someone whose three highest years add up to $210,000 (FAE $5,833.33 a month), with all service from 1997 on and a pension starting the month after they stop work.
| You are | Months to 60 / to 30 yrs | Before 2012 | 2012 or later |
|---|---|---|---|
| Age 55, 20 years | 60 / n/a | $1,89912% cut | $1,64024% cut |
| Age 57, 27 years | 36 / 36 | $2,7047.2% cut | $2,49414.4% cut |
| Age 52, 26 years | 96 / 48 | $2,5369.6% cut | $2,26719.2% cut |
| Age 58 1/2, 25 years | 18 / 60 | $2,6013.6% cut | $2,5047.2% cut |
"n/a": under 25 years, only the age path applies. With 25 years or more at 55 or over, both apply and the closer one counts.
The Office of Pensions' own example: retiring at 55 with 23 years, hired before 2012, is 60 months under 60 (7 years short of 30 would be 84 months), so the cut is 12%: $2,380.56 becomes $2,094.89. Office of Pensions workshop slides (Aug. 4, 2026), slides 19-20 (calculator inputs and results)
The early cut counts the months you are under 60 (or short of 30 years), but the sources don't say how part of a month counts. We count whole months of age on your last day of work, and your service in whole months.
What would settle it: An Office of Pensions estimate for someone retiring mid-month of age, e.g. 57 years 4 months 15 days.
Hired in 2012 or later, 60 with 15 to 19 years
You can't get the full pension until 20 years, but you're past 55 with 15 years, so the reduced pension applies. Its cut is counted to age 60, which you've reached. At 61 with 17 years on our $210,000 example, that's $1,834.58 a month with a 0% cut.
If you were first hired in 2012 or later and are 60 or older with 15 to 19 years, you can't get the unreduced pension (that needs 20 years at 60). The reduced pension's cut is measured only to age 60, so it works out to zero. No source shows this case. We show a reduced pension with a 0% cut.
What would settle it: An Office of Pensions estimate for a post-2011 member retiring at 61 with 17 years.
If you've already left
If you leave before you can retire, a vested pension starts the first of the month after your 62nd birthday (hired before 1/1/2012, 5 consecutive years) or 65th birthday (hired on or after 1/1/2012, 10 years with 5 consecutive). There is no reduced early option for a former employee. A former employee with 20 years that include service before July 1, 1976 can start at 60. Summary Plan Description (2026), p. 18, Table 2 (Vested); Office of Pensions workshop slides (Aug. 4, 2026), slide 9 ('effective first of the month following 62nd birthday' / '65th birthday'); SEPP FAQs (saved Nov. 12, 2026), Vested Pension
Try your own dates in the calculator, or see what one more year adds, the formula and leaving before you retire.
Questions
When can I take a reduced pension?
At 55 with 15 years of service, or at any age with 25 years. You need 5 years in a row as well.
How big is the cut?
0.2% for each month if you were first hired before 2012, 0.4% a month if hired in 2012 or later. It's permanent.
Which months count?
The months you are short of age 60, or short of 30 years of service, whichever is closer. At 57 with 27 years, they are 36 and 36 months away; at 52 with 26 years, 30 years is closer (48 months) than age 60 (96 months).
Can a former employee take a reduced pension?
No. If you leave before you can retire, your vested pension starts at 62 (hired before 2012) or 65 (hired 2012 or later), with no reduced option.
Source: State Employees' Pension Plan Summary Plan Description, 2026 edition (PDF dated May 14, 2026), pp. 18, 24. Also: Office of Pensions workshop (Aug. 4, 2026), slides 7-9, 19-20; Office of Pensions SEPP FAQs; 29 Del. C. § 5522. Last reviewed .