New Hampshire · NHRS · Early retirement

Retiring early from NHRS: the permanent cut

The New Hampshire Retirement System (NHRS) pays an unreduced pension at 60 in Tiers A and B and at 65 in Tier C. You can start earlier, but the pension is cut for every month you're short, for life.

Tiers A and B

50 to 59

With at least 10 years of service. Or before 50 under the Rule of 70: 20+ years and age plus service of 70.

NHRS page 'Early Service Retirement: Group I Tier A & B', table; Group I Summaries, Tiers A and B (Rev. 10/2024), PDF p. 1, Early Retirement; RSA 100-A:5, I(c)

Tier C

60 to 64

Only with at least 30 years of service. Reduced 0.25% for each month before 65.

NHRS page 'Early Service Retirement: Group I Tier C'; Group I Summary, Tier C (Rev. 10/2024), PDF p. 1; RSA 100-A:5, I(a)

Tiers A and B: the reduction table

The more service you have, the smaller the cut for each month before 60. NHRS page 'Early Service Retirement: Group I Tier A & B', table; Group I Summaries, Tiers A and B (Rev. 10/2024), PDF p. 1, Early Retirement; RSA 100-A:5, I(c)

Tiers A and B: the reduction table (New Hampshire NHRS)
Years of servicePer monthPer year10 years early
35 or more1/8%1.5%15%
30 to 341/4%3%30%
25 to 291/3%4%40%
20 to 245/12%5%50%
Under 205/9%6 2/3%66.67%

Tiers A and B: at least 10 years of Creditable Service and ages 50-59; or at least 20 years and age plus Creditable Service of 70 or more ('Rule of 70') before 50. The pension is the pre-full-Social-Security-age service retirement formula, permanently reduced by the band's factor for each year and month before age 60 (statute: each month by which the commencement date precedes the month after the member attains 60). The reduction is separate from and in addition to the recalculation at full Social Security retirement age. NHRS page 'Early Service Retirement: Group I Tier A & B', table; Group I Summaries, Tiers A and B (Rev. 10/2024), PDF p. 1, Early Retirement; RSA 100-A:5, I(c)

NHRS's Tier A and B example

25 years at 55, AFC $40,000: $40,000 ÷ 60 × 25 = $16,666.68 a year5 years early × 4% = 20% less: $13,333.33 a year ($1,111.11 a month)From full Social Security age: $12,121.21 a year. NHRS shows $13,334 and $12,122. NHRS page 'Early Service Retirement: Group I Tier A & B', Early Retirement Pension Calculation Example

Load this example into the calculator.

NHRS rounds before reducing Check with NHRS

The Tier A & B early example rounds before reducing: $16,667 - $3,333 = $13,334 and $15,152 - $3,030 = $12,122. The exact formula gives $13,333.33 and $12,121.21. Tier C example: $18,182 - $2,727 = $15,455 vs exact $15,454.55. We follow the formula (tests allow the $1 rounding).

NHRS pages 'Early Service Retirement: Group I Tier A & B' and 'Tier C'

Our engine on NHRS's rules, not an NHRS example: a member who stops with 25 years on a $50,000 AFC and starts the pension at each age. The second amount is after full Social Security age.

NHRS's Tier A and B example
Start atCutMonthlyLater
5040%$1,042$947
5136%$1,111$1,010
5232%$1,181$1,073
5328%$1,250$1,136
5424%$1,319$1,199
5520%$1,389$1,263
5616%$1,458$1,326
5712%$1,528$1,389
588%$1,597$1,452
594%$1,667$1,515
60none$1,736$1,578

The Rule of 70

With at least 20 years, Tier A and B members can retire before 50 if age plus service is 70 or more (for example 45 and 25 years). The reduction uses the same table, counted to 60, so it can be large.

Counting age for the Rule of 70 Check with NHRS

Age plus service must equal at least 70. Sources don't say whether age counts in years and months. The engine uses years and completed months of age plus service.

Age in years and months.

What would settle it: NHRS estimate or rule.

Rule of 70 after leaving Check with NHRS

RSA 100-A:5, I(c) offers Rule of 70 early retirement to members meeting RSA 100-A:10, I(a). NHRS's vested deferred pages mention only ages 50-59 for Tiers A and B. The engine applies the Rule of 70 only to members still in service.

Rule of 70 only while you're still working under NHRS.

What would settle it: NHRS confirmation or Ret administrative rules.

Tier C: 1/4% a month before 65

Tier C: at least 30 years of Creditable Service, ages 60-64. Reduced by 1/4 of one percent for each month prior to age 65 (statute: each month by which the commencement date precedes the month after the member attains 65). NHRS page 'Early Service Retirement: Group I Tier C'; Group I Summary, Tier C (Rev. 10/2024), PDF p. 1; RSA 100-A:5, I(a)

NHRS's example: 30 years at 60, AFC $40,000: $20,000.04 a year60 months × 0.25% = 15% less: $17,000.00 a year, then $15,454.55 from full Social Security ageNHRS shows $17,000 and $15,455. NHRS page 'Early Service Retirement: Group I Tier C', Pension Calculation Example

Load this example into the calculator.

Tier C: 1/4% a month before 65 (New Hampshire NHRS)
Start at (stopped with 30 years, $50,000)CutMonthlyLater
6015%$1,771$1,610
6112%$1,833$1,667
629%$1,896$1,723
636%$1,958$1,780
643%$2,021$1,837
65none$2,083$1,894

Our engine, not an NHRS example. With fewer than 30 years, Tier C can't start a pension before 65 at all.

NHRS's Tier C example says 'unreduced at 60' Check with NHRS

NHRS's 'Service Retirement: Group I Tier C' page gives the unreduced example 'retired with 30 years of Creditable Service at age 60 ... $30,000.00', the same example as the Tier A & B page. Under the same page's rule (and RSA 100-A:5, I(a)), a Tier C member can't collect an unreduced pension until 65; at 60 with 30 years the pension is reduced 15% (NHRS's own Tier C early example). We test the Tier C formula at 65.

On NHRS's numbers ($60,000 AFC, 30 years), the Tier C rule gives $30,000 a year at 65, but $25,500 at 60 (15% less). Our calculator follows the rule. NHRS page 'Service Retirement: Group I Tier C', Annual Pension Calculation Examples

NHRS pages 'Service Retirement: Group I Tier C' and 'Early Service Retirement: Group I Tier C'

'Eligible at 60' in Tier C Check with NHRS

The Tier C summary says members 'are eligible for a benefit at the age of 60 ... but cannot collect the benefit until age 65', while the Terminating Employment FAQ says Tier C members 'are eligible for Service Retirement at age 65'. Both mean no unreduced pension before 65 (RSA 100-A:5, I(a)). The engine pays nothing before 65 unless the member has 30 years (early, reduced).

Group I Summary, Tier C (Rev. 10/2024), PDF p. 1; NHRS page 'FAQ: Terminating Employment Prior to Retirement'

How the months are counted

State law counts the months from your retirement date to the month after you reach 60 (or 65). Retirement dates are always the 1st of a month.

How the months before 60 (or 65) are counted Check with NHRS

RSA 100-A:5, I(a) and I(c) count months 'by which the date on which benefits commence precedes the month after which the member attains' 60 (or 65). NHRS's pages say 'years and months before age 60'. The engine counts whole months from the retirement date to the first of the month after the birthday month. For a birthday on the 1st this may be one month more than NHRS counts.

Months to the 1st of the month after your 60th (65th) birthday.

What would settle it: An NHRS estimate for an early retiree born on the 1st of a month.

Before you file

A member who hasn't attained normal retirement age may not apply for an early retirement with a prearrangement, written or oral, to return to work for any NHRS-participating employer (Internal Revenue Code). NHRS page 'Early Service Retirement', Prearrangement prohibited

See also what one more year adds, which tier you're in, the formula, and leaving before you can retire.

Questions

How much does NHRS reduce early retirement in Tiers A and B?

It depends on your service, for each month before 60: 35 or more years, 1.5% a year; 30 to 34 years, 3% a year; 25 to 29 years, 4% a year; 20 to 24 years, 5% a year; Under 20 years, 6 2/3% a year. The cut is permanent.

How much does NHRS reduce early retirement in Tier C?

1/4% for each month before 65 (3% a year), with at least 30 years of service and age 60 to 64. At 60 that's 15% less.

What is the NHRS Rule of 70?

Tier A and B members with at least 20 years can retire before 50 if their age plus service adds up to 70 or more, such as 45 and 25 years. The pension is reduced like any early retirement.

Source: NHRS Group I (Employee and Teacher) Member Benefits summaries, Tiers A, B and C, Rev. 10/2024, PDF p. 1. Also: NHRS member web pages (saved Nov. 12, 2026); NHRS Service Retirement Booklet (Rev 7/2023); RSA 100-A:1, 100-A:5. Last reviewed .