Retiring with no cut
- TRS 1, 2 and 3: you can retire with no reduction at any age with 27 years of service, or at age 60 with at least five years.KRS 161.600(1)(a), (c); TRS 1-3 Service Retirement bulletin p. 1
- TRS 4: you can retire with no reduction at age 57 with 30 years, age 60 with 10 years, or age 65 with five years.KRS 161.600(2)(a)-(c); TRS 4 SPD p. 13
- TRS of Kentucky counts you as having reached an age on the first of the month after your birthday. Retirements always start on the first of a month, and the application is due one month before.TRS 4 SPD pp. 13, 16; TRS 1-3 Service Retirement bulletin pp. 1-2
- Service credit from unused sick leave raises your benefit but cannot be used to become eligible to retire.TRS 1-3 Service Retirement bulletin p. 1; KRS 161.623(2)
Retiring early
- TRS 1 and TRS 2 can retire early at age 55 with five years. The benefit is cut 5% for each year you are under 60 or under 27 years of service, whichever is fewer (up to 25%).KRS 161.600(1)(b)1.; TRS 1-3 Service Retirement bulletin p. 1; TRS Basics 1-3 p. 2
- TRS 3 can retire early at age 55 with 10 years. The cut is 6% for each year under 60 or under 27 years, whichever is fewer (up to 30%).KRS 161.600(1)(b)2.; TRS 1-3 Service Retirement bulletin p. 1; TRS Basics 1-3 p. 2
- TRS 4 can retire early at age 57 with 10 years. The cut is 6% for each year under 60 or under 30 years, whichever is fewer (up to 18%). Examples: 57 with 10 years = 18%; 58 with 11 years = 12%; 58 with 29 years = 6%.KRS 161.600(2)(d); TRS 4 SPD p. 13
TRS of Kentucky's examples of the early-retirement cut use whole years only (5% or 6% for each year). The sources don't say what happens with part of a year.
We prorate by month: age 57 and 6 months counts as 2.5 years under 60.
KRS 161.600(1)(b), (2)(d); TRS 4 SPD p. 13TRS 1 and TRS 2: 5% a year, up to 25%
| Age \ years | 5 yrs | 23 yrs | 25 yrs | 26 yrs |
|---|---|---|---|---|
| 55 | 25% | 20% | 10% | 5% |
| 56 | 20% | 20% | 10% | 5% |
| 57 | 15% | 15% | 10% | 5% |
| 58 | 10% | 10% | 10% | 5% |
| 59 | 5% | 5% | 5% | 5% |
TRS 3: 6% a year, up to 30%
| Age \ years | 10 yrs | 23 yrs | 25 yrs | 26 yrs |
|---|---|---|---|---|
| 55 | 30% | 24% | 12% | 6% |
| 56 | 24% | 24% | 12% | 6% |
| 57 | 18% | 18% | 12% | 6% |
| 58 | 12% | 12% | 12% | 6% |
| 59 | 6% | 6% | 6% | 6% |
TRS 4: 6% a year, up to 18%
| Age \ years | 10 yrs | 26 yrs | 28 yrs | 29 yrs |
|---|---|---|---|---|
| 57 | 18% | 18% | 12% | 6% |
| 58 | 12% | 12% | 12% | 6% |
| 59 | 6% | 6% | 6% | 6% |
Each cell is the cut for retiring at that age with that many years of service (our engine, whole years). At 60 or with 27 years (30 for TRS 4) there's no cut in TRS 1-3; TRS 4 also needs age 57 with 30 years, 60 with 10 or 65 with 5.
TRS of Kentucky's TRS 4 examples
- Age 57 with 10 years: 18% (our engine: 18%). TRS 4 SPD p. 13
- Age 58 with 11 years: 12% (our engine: 12%). TRS 4 SPD p. 13
- Age 58 with 29 years: 6% (our engine: 6%). TRS 4 SPD p. 13
Examples on a $60,000 average (our engine)
- TRS 1, age 55 with 20 years: 5 years under 60, 7 short of 27, so 5% × 5 = 25% less (the most it can be): $1,875.00 a month.
- TRS 1, age 58 with 25 years: 2 years under 60, 2 short of 27, so 5% × 2 = 10% less: $2,812.50 a month.
- TRS 3, age 55 with 10 years: 5 years under 60, 17 short of 27, so 6% × 5 = 30% less (the most it can be): $595.00 a month.
- TRS 3, age 57 with 25 years: 3 years under 60, 2 short of 27, so 6% × 2 = 12% less: $2,530.00 a month.
Ages are counted from the 1st of the next month
Age eligibility is reached on the first of the month following a member's birthday. TRS of Kentucky retirements are effective the first day of a month. TRS 4 SPD p. 13, Service retirement eligibility; TRS 1-3 Service Retirement bulletin p. 1; TRS 1-3 SPD (2011) p. 34; TRS 4 SPD p. 16, Applying for retirement
TRS of Kentucky says you reach an age on the first of the month after your birthday. It doesn't say what happens if your birthday is on the 1st.
We follow the rule as written: born March 1, you reach the age on April 1.
TRS 4 SPD p. 13; TRS 1-3 Service Retirement bulletin p. 1Sick leave and other systems
Sick-leave service credit cannot be used to reach eligibility or to lessen early retirement penalties. TRS 4 SPD p. 17, Sick leave; KRS 161.623(2)
A member eligible only through Kentucky Public Pensions Authority service (KRS 161.600(1)(d) / 61.559) has a different, actuary-set reduction. Not calculated here. KRS 161.600(1)(d); TRS 4 SPD p. 14, Reciprocity
See your own dates in the calculator, and what waiting a year is worth.
Questions
How much does retiring early cost with TRS of Kentucky?
TRS 1 and 2: 5% for each year you're under 60 or under 27 years of service, whichever is fewer, up to 25%. TRS 3: 6% a year, up to 30%. TRS 4: 6% for each year under 60 or under 30 years, up to 18%.
When is the earliest I can retire?
TRS 1 and 2: age 55 with 5 years (or 27 years at any age, unreduced). TRS 3: age 55 with 10 years. TRS 4: age 57 with 10 years.
Does sick-leave credit reduce the cut?
No. Sick-leave service credit raises your benefit, but it can't be used to become eligible or to lessen an early-retirement cut.
Is the cut permanent?
Yes. The reduced amount is your benefit for life (plus COLAs).
Source: TRS Summary Plan Descriptions and Service Retirement bulletins, TRS 4 SPD January 2022; TRS 1-3 SPD 2011; Service Retirement bulletins March 2023, TRS 1-3 Service Retirement bulletin pp. 1, 1-2; TRS 1-3 SPD (2011) pp. 34, 56-57; TRS 4 SPD pp. 13, 14, 16, 17; TRS 4 Service Retirement bulletin p. 1. Also: TRS Basics 1-3 p. 2; KRS 161.600, 161.623. Last reviewed .