The three kinds of retirement
| Kind | Who qualifies | How it's figured |
|---|---|---|
| Normal | Age 60 with 5 years; or 30 years at any age; or age + service = 80 or more (Rule of 80) | 2.5% factor (2.55% with 32+ years). No cut. |
| 25-and-Out | Under 55, 25 to under 30 years, not Rule of 80 | A smaller factor: 2.2% to 2.4% |
| Age-reduced | Age 55 to 59, 5+ years, not Rule of 80 | Full 2.5% formula × an age factor |
PSRS says your age plus service must equal 80, but doesn't say whether your age counts months or only whole years.
What we use: your age in years and months (55 years 6 months = 55.5) plus your service.
The handbook says your retirement can start on the first day of the month after the day you become eligible. It doesn't say what happens if you turn 60 (or reach the Rule of 80) on the 1st of a month.
What we use: you must be eligible by the day before your retirement date. Turn 60 on July 1 and full benefits start August 1.
25-and-Out
Under age 55 with at least 25 but fewer than 30 years, and not meeting the Rule of 80. Handbook p. 48, Early Retirement Benefits: 25-and-Out, Eligibility
The table uses a $4,590 monthly average salary and age 50, below the Rule of 80. Monthly amounts are ours, from PSRS's factors.
| Years | Factor | Monthly | At the full 2.5% | Cut |
|---|---|---|---|---|
| 25 | 2.2% | $2,524.50 | $2,868.75 | 12% |
| 26 | 2.25% | $2,685.15 | $2,983.50 | 10% |
| 27 | 2.3% | $2,850.39 | $3,098.25 | 8% |
| 28 | 2.35% | $3,020.22 | $3,213.00 | 6% |
| 29 | 2.4% | $3,194.64 | $3,327.75 | 4% |
Age-reduced benefits
At least age 55 but younger than 60 with at least five years, and not meeting the Rule of 80. The normal 2.5% formula times an age-reduction factor. Handbook p. 48, Early Retirement Benefits: Age-Reduced, Eligibility
PSRS calls these factors approximate. The table uses PSRS's example of 18 years and a $4,590 monthly average.
| Age | Age factor | Monthly | Full formula | Cut |
|---|---|---|---|---|
| 55 | 0.6543 | $1,351.46 | $2,065.50 | 34.6% |
| 56 | 0.711 | $1,468.57 | $2,065.50 | 28.9% |
| 57 | 0.7733 | $1,597.25 | $2,065.50 | 22.7% |
| 58 | 0.8417 | $1,738.53 | $2,065.50 | 15.8% |
| 59 | 0.917 | $1,894.06 | $2,065.50 | 8.3% |
PSRS prints age-reduction factors only for whole ages (55 to 59) and calls them approximate. Its real factor uses your age in years and months, so someone at 55 and 11 months gets a factor between the age-55 and age-56 numbers.
What we use: the factor for your age in whole years. If you're partway to your next birthday, PSRS's figure will likely be a little higher.
Under 55 with 25 years: two readings
The handbook says members under 55 with 25 to 29-plus years retire under 25-and-Out. Missouri law and PSRS's annual report also mention an age-reduced (actuarial) benefit for this group. We follow the handbook.
- Handbook: Members under 55 with 25-29.99 years (not Rule of 80) retire under 25-and-Out; age-reduced benefits are described only for ages 55-59.
- Law and annual report: RSMo 169.070.3(1) lets a member with 25 or more years (or age 55 with 5) elect the actuarial equivalent; the ACFR (p. 30) says age-reduced benefits are available 'with 25 years of service (if not yet age 55)'.
Check with PSRS If you're under 55, ask PSRS which calculation applies to you.
Ways to avoid the cut
- Work longer. Each year adds a year of age and a year of service, two points toward the Rule of 80. One more year?
- Buy or reinstate service. Buying service credit
What the handbook says
- You can retire with full benefits at age 60 with at least 5 years of service, at any age with 30 years, or when your age plus your service adds up to 80 or more (the Rule of 80).Handbook p. 47, Normal Retirement Benefits
- With 32 or more years of service, your benefit factor rises from 2.5% to 2.55%. This applies to retirements on or after September 1, 2023.Handbook p. 47, Normal Retirement Benefits
- Your retirement starts on the 1st of the month after the last of three dates: when you become eligible, when you leave covered work, and when you file your application. Most members retire July 1.Handbook p. 57, Your Retirement Date
- If you work a full school year, the earliest you can retire is July 1. You can't get a full year of service and retirement benefits in the same school year.Handbook p. 57, Your Retirement Date
- Your application must be filed before your retirement date. For July 1, it must be submitted online or postmarked by June 30. PSRS recommends applying at least three months early.Handbook p. 57, Application Deadline; p. 59, When to File for Retirement
- Benefits are paid by direct deposit on the last working day of each month, starting with the month your retirement takes effect.Handbook p. 70, Direct Deposit
- Check with PSRSOur calculator reads PSRS's rule ('the first day of the month following the day you reach eligibility') literally: if your 60th birthday is on the 1st of a month, we show full benefits from the next month.Handbook p. 57, Your Retirement DateNo example covers a birthday on the 1st.
- There are two ways to retire early. 25-and-Out is for members under 55 with 25 to 29.99 years who don't meet the Rule of 80. Age-reduced retirement is for members age 55 to 59 with at least 5 years who don't meet the Rule of 80.Handbook p. 48, Early Retirement Benefits
- 25-and-Out uses a smaller benefit factor based on your service: 2.20% with 25 years, 2.25% with 26, 2.30% with 27, 2.35% with 28 and 2.40% with 29.Handbook p. 48, 25-and-Out Factors
- Example from PSRS: at age 50 with 25 years and a $4,590 monthly average salary, 25-and-Out pays 2.2% x $4,590 x 25 = $2,525 a month.Handbook p. 48, Early Retirement Benefits: 25-and-Out, Example
- Age-reduced benefits use the full 2.5% formula times an age-reduction factor. PSRS's approximate factors are .6543 at 55, .7110 at 56, .7733 at 57, .8417 at 58 and .9170 at 59.Handbook p. 48, Age-Reduction Factors
- Example from PSRS: at 55 with 18 years, 2.5% x $4,590 x 18 x .6543 = $1,351 a month.Handbook p. 48, Early Retirement Benefits: Age-Reduced, Example
- Check with PSRSPSRS's real age-reduction factors use your age in years and months and can change with actuarial assumptions. Our calculator uses the published factor for your age in whole years, so it may understate your benefit if you're partway to your next birthday.Handbook p. 49 (factors are approximates)No month-by-month factor table is published.
Questions
When can I retire from PSRS with full benefits?
At 60 with 5 years, with 30 years at any age, or when your age plus your service is 80 or more (the Rule of 80).
What is 25-and-Out?
Early retirement under 55 with 25 to 29-plus years, if you don't meet the Rule of 80. PSRS uses a smaller factor, 2.2% to 2.4%, instead of 2.5%.
What is an age-reduced benefit?
Early retirement from 55 to 59 with 5 or more years, if you don't meet the Rule of 80. PSRS multiplies the full formula by an age factor, from 0.6543 at 55 to 0.917 at 59.
Is the cut permanent?
Yes. An early benefit stays smaller for life.
Source: PSRS Member Handbook, 2026-2027 (as of September 2026), pp. 9, 25, 47, 48, 49, 57, 59, 70; ACFR 2025 p. 30; RSMo 169.070. Last reviewed .