Group C #1: from the handout's example ($35,000 average pay)
| Retire at | Years | Percent | Cut | Monthly |
|---|---|---|---|---|
| 58 yr 3 mo (handout) | 25 | 41.75% | 22.5% | $944 |
| 59 yr 3 mo | 26 | 43.42% | 16.5% | $1,057 |
| 60 yr 3 mo | 27 | 45.09% | 10.5% | $1,177 |
| 61 yr 3 mo | 28 | 46.76% | 4.5% | $1,302 |
| 62 yr 3 mo | 29 | 48.43% | none | $1,413 |
Each year adds 1.67% and removes 12 months (6 points) of the cut. From age 62 there is no cut. Group C #1 handout, p. 3, Early Retirement
Group C #2: from the handout's example ($35,000 average pay)
| Retire at | Years | Age + years | Percent | Monthly |
|---|---|---|---|---|
| 58 yr 3 mo (handout) | 20 | 78.25 | 33.4% | $541 |
| 59 yr 3 mo | 21 | 80.25 | 35.4% | $1,033* before cut |
| 60 yr 3 mo | 22 | 82.25 | 37.4% | $1,091* before cut |
| 61 yr 3 mo | 23 | 84.25 | 39.4% | $1,149* before cut |
| 62 yr 3 mo | 24 | 86.25 | 41.4% | $1,208* before cut |
| 63 yr 3 mo | 25 | 88.25 | 43.4% | $1,266* before cut |
| 64 yr 3 mo | 26 | 90.25 | 45.4% | $1,324 |
| 65 yr 3 mo | 27 | 92.25 | 47.4% | $1,383 |
Each year adds a year of age and a year of service: two points toward the rule of 90. Here it is reached at age 64, so the benefit is unreduced from then. * VSTRS publishes no Group C #2 early factor for these ages. Group C #2 handout, p. 1, Normal Retirement (age 65 or age plus service credit equals 90); 16 V.S.A. § 1937(a)(3); 2025 valuation, p. 57, Exhibit H
For Group C #2, VSTRS cuts an early benefit by an actuarial amount for each month you are under 65. It publishes only one example factor: .555434 at age 58 and 3 months.
We show your unreduced amount. We compute the reduced amount only at that published age, or with a factor you type in from your VSTRS estimate.
Group C #2 handout, pp. 1, 3The rule of 90 adds your age and your service. VSTRS doesn't say whether it counts part-years of age.
We count your age in whole months (60 years 6 months = 60.5).
Group C #2 handout, pp. 1-3; 16 V.S.A. § 1937(a)(3)What the sources say
- Each extra year of Group C service adds 1.67% of AFC to your benefit. For Group C #2, years past 20 add 2%, until the 60% maximum.Group C #2 handout, pp. 2-3; 16 V.S.A. § 1937(c)(2)
- For a Group C #1 member under 62, working one more year also removes 12 months of the 1/2%-a-month early reduction (6 percentage points).Group C #1 handout, p. 3
- For a Group C #2 member, each year worked adds a year of service and a year of age, so it moves you two points closer to the rule of 90.Group C #2 handout, p. 1
The gain comes from the benefit formula: one more year of service, and possibly a higher average final compensation. For Group C #2 it can also mean reaching the rule of 90, explained in retiring early. Check which group you are in first, since the rules differ.
Questions
How much does one more year add to a VSTRS pension?
At least 1.67% of your average final compensation (2% for Group C #2 years past 20). If you would retire early, it also shrinks the early-retirement cut, which is usually worth far more.
When does working longer stop paying off?
When you reach the maximum (60% for Group C #2, 53.34% for Group C #1). After that, more years add nothing except through raises in your average final compensation.
Source: VSTRS Eligibility for Retirement: Group C #2 handout (Office of the State Treasurer), undated (PDF of Sept. 21, 2012), with 16 V.S.A. chapter 55 as of the 2026 session, pp. 1, 2, 3; Group C #1 handout p. 3; 2025 valuation p. 57; 16 V.S.A. § 1937. Last reviewed .