How the cut works
A member who has reached age 50, has terminated employment with all employers, and has 5 years of total credited service may elect a reduced retirement income. The normal benefit is reduced 5% a year from age 50 to 60 and 3% a year from age 60 to 65, over the period from benefit commencement to the birthday set by service. ASRS Retirement Eligibility page, table (EARLY: 50 + 5 years); ASRS Employer Basics 2025, p. 8; A.R.S. 38-758(A); A.R.S. 38-711(11)
Early retirement means the benefit is actuarially reduced, and the reduced benefit does not increase when the retiree later reaches normal retirement eligibility. ASRS: the reduction ensures that total benefits paid over a lifetime do not exceed those paid had the member waited until normal retirement. ASRS Employer Basics 2025, p. 8; A.R.S. 38-758; ASRS Estimate Your Benefits page, Retirement Age
- Membership before July 1, 2011: reduction measured to the 60th birthday with 20+ years, the 62nd with 10-19.99 years, or the 65th with 5-9.99 years. Alternatively, if age + service is 77 or more but less than 80, 3% for each unit of one or fraction of one by which the sum is less than 80. The statute says the benefit is reduced 'either' way. A.R.S. 38-758(B)(1)-(2)
- Membership on or after July 1, 2011: reduction measured to the 62nd birthday with 10+ years, or the 65th with 5-9.99 years. There is no 77-79 points alternative. ASRS Estimate Your Benefits page, early retirement factors; A.R.S. 38-758(C)
ASRS's early-retirement factors
The share of your normal benefit ASRS pays, by your whole age when benefits start and your years of service. From the estimator on ASRS's Estimate Your Benefits page. A factor of 1.00 means no cut. Every age from 65 up is 1.00.
| Age | 5 yrs | 10 yrs | 20 yrs | 25 yrs | 30 yrs |
|---|---|---|---|---|---|
| 50 | 0.35 | 0.44 | 0.44 | 0.44 | 0.44 |
| 51 | 0.40 | 0.49 | 0.49 | 0.49 | 0.49 |
| 52 | 0.45 | 0.54 | 0.54 | 0.54 | 0.54 |
| 53 | 0.50 | 0.59 | 0.59 | 0.59 | 0.59 |
| 54 | 0.55 | 0.64 | 0.64 | 0.64 | 0.64 |
| 55 | 0.60 | 0.69 | 0.69 | 0.69 | 1.00 |
| 56 | 0.65 | 0.74 | 0.74 | 0.74 | 1.00 |
| 57 | 0.70 | 0.79 | 0.79 | 0.79 | 1.00 |
| 58 | 0.75 | 0.84 | 0.84 | 0.84 | 1.00 |
| 59 | 0.80 | 0.89 | 0.89 | 0.89 | 1.00 |
| 60 | 0.85 | 0.94 | 0.94 | 1.00 | 1.00 |
| 61 | 0.88 | 0.97 | 0.97 | 1.00 | 1.00 |
| 62 | 0.91 | 1.00 | 1.00 | 1.00 | 1.00 |
| 63 | 0.94 | 1.00 | 1.00 | 1.00 | 1.00 |
| 64 | 0.97 | 1.00 | 1.00 | 1.00 | 1.00 |
| 65+ | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
ASRS's script says it uses the same factors for every membership date. They match the law exactly for membership from July 1, 2011 (the 5% and 3% yearly rates below). For 10 to 19 years read the 10-year column.
The cut by age under the law
Membership from July 1, 2011 Matches ASRS's factors
10+ years: measured to age 62
| Retire at | Cut |
|---|---|
| 50 | 56% |
| 51 | 51% |
| 52 | 46% |
| 53 | 41% |
| 54 | 36% |
| 55 | 31% |
| 56 | 26% |
| 57 | 21% |
| 58 | 16% |
| 59 | 11% |
| 60 | 6% |
| 61 | 3% |
| 62 | none |
5 to 9.99 years: measured to age 65
| Retire at | Cut |
|---|---|
| 50 | 65% |
| 51 | 60% |
| 52 | 55% |
| 53 | 50% |
| 54 | 45% |
| 55 | 40% |
| 56 | 35% |
| 57 | 30% |
| 58 | 25% |
| 59 | 20% |
| 60 | 15% |
| 61 | 12% |
| 62 | 9% |
| 63 | 6% |
| 64 | 3% |
| 65 | none |
Membership before July 1, 2011 Check with ASRS
20+ years: measured to age 60
| Retire at | Cut |
|---|---|
| 50 | 50% |
| 51 | 45% |
| 52 | 40% |
| 53 | 35% |
| 54 | 30% |
| 55 | 25% |
| 56 | 20% |
| 57 | 15% |
| 58 | 10% |
| 59 | 5% |
| 60 | none |
10 to 19.99 years: measured to age 62
| Retire at | Cut |
|---|---|
| 50 | 56% |
| 51 | 51% |
| 52 | 46% |
| 53 | 41% |
| 54 | 36% |
| 55 | 31% |
| 56 | 26% |
| 57 | 21% |
| 58 | 16% |
| 59 | 11% |
| 60 | 6% |
| 61 | 3% |
| 62 | none |
5 to 9.99 years: measured to age 65
| Retire at | Cut |
|---|---|
| 50 | 65% |
| 51 | 60% |
| 52 | 55% |
| 53 | 50% |
| 54 | 45% |
| 55 | 40% |
| 56 | 35% |
| 57 | 30% |
| 58 | 25% |
| 59 | 20% |
| 60 | 15% |
| 61 | 12% |
| 62 | 9% |
| 63 | 6% |
| 64 | 3% |
| 65 | none |
Before July 1, 2011 only: the 77-to-79 points rule
| Age + service | Cut |
|---|---|
| 77 to under 78 | 9% |
| 78 to under 79 | 6% |
| 79 to under 80 | 3% |
3% for each point, or part of a point, short of 80.
If your membership began before July 1, 2011 and you have 20 or more years, the law measures an early cut to age 60. The simple estimator on ASRS's website measures it to 62 for everyone, which gives a bigger cut.
We follow the law (to 60, and the 77-79 points rule). Your myASRS estimate is the one to trust.
ASRS Estimate Your Benefits page, early retirement factors; A.R.S. 38-758(B). What would settle it: A personal ASRS estimate (myASRS) for a pre-2011 member with 20+ years retiring before 60, or a full ASRS member handbook.ASRS publishes its early-retirement factors by whole age (50, 51, 52 ...). It does not say how part of a year is counted.
We count whole months: one-twelfth of the yearly rate for each full month before the target birthday.
ASRS Estimate Your Benefits page, early retirement factors; A.R.S. 38-758(B)(1), (C). What would settle it: An ASRS benefit estimate (myASRS) for a retirement date between birthdays.If your membership began before July 1, 2011 and your age plus service is 77 to 79, the law gives two ways to reduce an early benefit. ASRS's publications do not say which one it uses when both apply.
We use whichever reduction is smaller, and say so in your results.
A.R.S. 38-758(B). What would settle it: An ASRS benefit estimate (myASRS) for a pre-2011 member with 77-79 points, or a full ASRS member handbook.When your benefit starts
The member chooses the retirement date. It must be at least one day after the termination date and cannot be earlier than the date ASRS receives the retirement application. Benefits are paid monthly from that date. ASRS Employer Basics 2025, p. 30; ASRS Session 3, slide 16; ASRS Re-Retirement Application, p. 1; A.R.S. 38-764(A)-(B) ASRS takes typically 45-90 days to calculate a new benefit; the new retiree may receive estimate checks in the meantime. ASRS Employer Basics 2025, p. 30
From ASRS and the law
- You can retire early at age 50 with 5 years of service, after leaving employment with all ASRS employers. Your benefit is permanently reduced: it does not go up when you later reach normal retirement.ASRS Employer Basics 2025, p. 8; ASRS Retirement Eligibility page, table; A.R.S. 38-758(A); A.R.S. 38-711(11)
- The reduction is 5% a year for years between ages 50 and 60, and 3% a year for years between ages 60 and 65, counted from when benefits start to a target birthday.A.R.S. 38-758(B)(1), (C)
- Membership before July 1, 2011: the target birthday is 60 with 20+ years of service, 62 with 10-19.99 years, or 65 with 5-9.99 years.A.R.S. 38-758(B)(1)
- Check with ASRSMembership before July 1, 2011: if your age plus service is 77, 78 or 79, the reduction can instead be 3% for each point (or part of a point) short of 80.A.R.S. 38-758(B)(2)The statute says 'either'; whether ASRS uses the smaller of the two reductions must be confirmed.
- Membership on or after July 1, 2011: the target birthday is 62 with 10+ years, or 65 with 5-9.99 years. There is no 77-79 points option. ASRS's published early factors match this exactly at whole ages.ASRS Estimate Your Benefits page, early retirement factors; A.R.S. 38-758(C)
- Example: joined after July 1, 2011, retiring at 57 with 26 years. Reduction runs to age 62: 3 years x 5% + 2 years x 3% = 21%, so you get 79% of the formula amount, the factor ASRS's estimator shows for age 57 (0.79).ASRS Estimate Your Benefits page, early retirement factors (age 57: 0.79); A.R.S. 38-758(C)
Your membership date decides which table applies (see which rules apply to you). Waiting can shrink or remove the cut (what one more year adds), and if you plan to keep working, early retirees face a longer wait under the return-to-work rules. See the cut for an example member.
Questions
How much does ASRS cut my pension if I retire early?
The law cuts 5% a year for years before 60 and 3% a year for years from 60 to 65, counted from your start date to a target birthday set by your service (ASRS Retirement Eligibility page, table (EARLY: 50 + 5 years); ASRS Employer Basics 2025, p. 8; A.R.S. 38-758(A); A.R.S. 38-711(11)). For membership from July 1, 2011, that is exactly ASRS's published factor table (ASRS Estimate Your Benefits page, estimator script). For earlier membership the law can give a smaller cut than ASRS's simple website estimator.
What is the earliest I can retire from ASRS?
Age 50 with 5 years of total credited service, after you leave employment with every ASRS employer (ASRS Retirement Eligibility page, table (EARLY: 50 + 5 years); ASRS Employer Basics 2025, p. 8; A.R.S. 38-758(A); A.R.S. 38-711(11)).
Is the cut permanent?
Yes. ASRS says the reduced benefit will not increase once you reach normal retirement (ASRS Employer Basics 2025, p. 8; A.R.S. 38-758).
When can my benefit start?
The member chooses the retirement date. It must be at least one day after the termination date and cannot be earlier than the date ASRS receives the retirement application. Benefits are paid monthly from that date. (ASRS Employer Basics 2025, p. 30; ASRS Session 3, slide 16; ASRS Re-Retirement Application, p. 1; A.R.S. 38-764(A)-(B))
Source: ASRS Employer Basics 2025 handbook, March 2025 edition, saved Nov. 12, 2026; with other ASRS publications and the Arizona Revised Statutes, pp. 8, 30. Also ASRS Basics for Employers, Session 3: Service Verification, Refunding, Retiring, Return to Work (slides), slide 16. Also ASRS Application for Re-Retirement Benefit, p. 1. Also ASRS web page: Retirement Eligibility. Also ASRS web page: Estimate Your Benefits. Also A.R.S. 38-711, 38-758, 38-764 (Arizona Revised Statutes, Title 38, Ch. 5, Art. 2). Last reviewed .