Working longer: an example
Our example (NPERS's rules): a Tier One member, age 60 with 22 years and a $60,000 average. Each year adds $100.00 a month to the benefit formula.
| Retire | Age · yrs | Type | Keep working | Stop, wait |
|---|---|---|---|---|
| Now | 60 22 yrs | Early, 15% less | $1,870.00 | $1,870.00 |
| +1 yr | 61 23 yrs | Early, 12% less | $2,024.00 | $1,936.00 |
| +2 yr | 62 24 yrs | Full benefit | $2,400.00 | $2,002.00 |
| +3 yr | 63 25 yrs | Full benefit | $2,500.00 | $2,200.00 |
| +4 yr | 64 26 yrs | Full benefit | $2,600.00 | $2,200.00 |
"Stop now, wait": the same member leaves at 60 with 22 years and starts later; the cut shrinks with age, but service stays at 22. Same average pay throughout. School Handbook p. 2, Your Benefit (Defined Benefit Formula); School Handbook p. 34, Early Retirement at Age 60: Reduced; School Handbook pp. 32-33, Rule of 85: Unreduced Early Retirement
At 62 with 24 years, age plus service passes 85, so the cut ends. If you stop working instead, you wait for 65, or until age alone gets you to 85. The cut itself is explained on early retirement. Can't work another year? Buying service credit can add years too.
Start early, or wait? NPERS's example
A vested member who leaves may leave the account and apply at retirement age. Monthly benefits do not grow after the member can draw an unreduced benefit. School Handbook p. 19, Deferral
From the sources
- NPERS's example: a member at 61 with a 12% cut gets $980.05 a month now, or $1,113.69 by waiting to 65. Starting now pays 48 checks ($47,042.40) before 65. At $133.64 a month more, waiting takes about 352 months (about 30 years) to catch up.Retirement News Sept. 2023 p. 1, Age Ain't Nuthin' But A Number
- If you keep working, each extra year adds 2% of your average salary to your yearly benefit. It also cuts 3 points off any early reduction and may get you to the Rule of 85. If you have already stopped working, your benefit stops growing once you could retire unreduced.School Handbook p. 2; p. 19; p. 34
Questions
How much does one more year add?
A year of service adds 2% of your average monthly pay to your monthly benefit, plus any raise in your average. If you're under 65 and not yet at the Rule of 85, it also takes 3 points off the early cut.
Does waiting help if I've already stopped working?
Only until you can retire unreduced. After that, your benefit doesn't grow, and months you don't apply for are lost.
Source: Nebraska School Employees Retirement System Handbook, Revised 07/2026, pp. 2, 19, 31, 32-33, 34, 37. Also: Retirement News Sept. 2023 p. 1. Last reviewed .