When you can retire
| Tier | Full pension | Reduced pension |
|---|---|---|
| Tier 1 Tier 1 Guide p. 17, Ch. 9 Retirement Benefits (age and service table) | 62 with 5 years; 60 with 10 years; 55 with 35 years | 55 with 20 years |
| Tier 2 Tier 2 Guide p. 18, Eligibility; Reduced retirement annuity | 67 with 10 years | 62 with 10 years |
Tier 1: If you are eligible for an annuity of at least 74.6% of final average salary and will reach age 55 between July 1 and Dec. 31, TRS considers you to have attained age 55 on the preceding June 1. Tier 1 Guide p. 17, footnote to age and service table
To start any pension you must leave your job. Effective Jan. 1, 2027, TRS rules require full separation from the last employer(s) in all capacities (TRS-covered and non-covered), no prearranged re-employment, and at least 30 days of separation after the termination date. TRS Illinois Tier 2 slides, slide 7, Retirement Eligibility: Separation from Service
How big the cut is
Both tiers cut 6% for each year you are under the full-pension age: 60 in Tier 1, 67 in Tier 2. Tier 1 Guide p. 18, Reduced retirement annuity; Tier 2 Guide p. 18, Reduced retirement annuity
| Tier 1 age | Tier 2 age | Cut | On a $56,100 pension |
|---|---|---|---|
| 60 | 67 | none | $56,100 a year |
| 59 | 66 | −6% | $52,734 a year |
| 58 | 65 | −12% | $49,368 a year |
| 57 | 64 | −18% | $46,002 a year |
| 56 | 63 | −24% | $42,636 a year |
| 55 | 62 | −30% | $39,270 a year |
Tier 1 applies the cut when you have 20 to 34.99 years. With 35 years there's no cut at 55. TRS Illinois Tier 2 slides, slide 59, Age Reduction (Tier 1 column); TRS Illinois Tier 2 slides, slide 59, Age Reduction (Tier 2 column)
TRS Illinois counts your age to three decimal places. TRS Illinois Tier 2 slides, slide 59, footnote
The Tier 1 guide says the early cut is half a percent per month. TRS Illinois's slides say age is counted to three decimal places. Both give the same cut at whole months; they can differ by a few hundredths of a percent in between.
What we use: We count whole months plus the fraction of the current month, then take 6% per year.
The Early Retirement Option is gone
The ERO let some Tier 1 members retire before 60 without the full cut. It expired on July 1, 2016. Members had paid 0.4% of pay toward it since July 1, 2005. TRS Illinois must offer a refund of those contributions, and there's no deadline to ask. TRS Illinois web page, Tier I - TRS Early Retirement Option Sunset Refunds (fetched 2026-11-11)
There's no DROP program either. The buyout programs are the closest thing to a lump-sum option: see Buyout programs.
What the guides say
- Tier 1: you can retire with an unreduced pension at 62 with 5 years of service, at 60 with 10 years, or at 55 with 35 years.Tier 1 Guide p. 17, Ch. 9 Retirement Benefits
- Tier 1: if you will have at least 74.6% of your salary average and turn 55 between July 1 and Dec. 31, TRS Illinois treats you as 55 on the June 1 before your birthday.Tier 1 Guide p. 17, footnote
- Tier 2: you can retire with an unreduced pension at 67 with at least 10 years of service.Tier 2 Guide p. 18, Eligibility
- To start a pension you must resign, and you cannot do any post-retirement work for the same employer for 30 days. Starting Jan. 1, 2027, you must leave every job with your last employer, covered or not, and stay away for at least 30 days.Tier 1 Guide p. 17; TRS Illinois Tier 2 slides, slide 7
- Tier 1: with 20 to 34.99 years you can retire as early as 55, but the pension is cut 6% for each year you are under 60 (half a percent per month). At 55 the cut is 30%.Tier 1 Guide p. 18, Reduced retirement annuity; TRS Illinois Tier 2 slides, slide 59
- Tier 2: with 10 years you can retire as early as 62, but the pension is cut 6% for each year you are under 67. At 62 the cut is 30%.Tier 2 Guide p. 18, Reduced retirement annuity; TRS Illinois Tier 2 slides, slide 59
- The early cut is permanent. A Tier 2 member who stops working early but waits until 67 to start the pension gets no cut.TRS Illinois Tier 2 slides, slide 18
- TRS Illinois counts your age at retirement to three decimal places when it figures the cut.TRS Illinois Tier 2 slides, slide 59, footnote
- The old Early Retirement Option (ERO), which let some Tier 1 members retire before 60 without the cut, ended on July 1, 2016. Members who paid into it can ask for a refund of those contributions at any time.TRS Illinois web page, Tier I - TRS Early Retirement Option Sunset Refunds (fetched 2026-11-11)
Questions
How early can I retire from TRS Illinois?
Tier 1: at 55 with 20 years, with a cut. Tier 2: at 62 with 10 years, with a cut.
Is the early cut permanent?
Yes. The cut stays for life. A Tier 2 member who stops working early but waits until 67 to start the pension gets no cut.
Does the Early Retirement Option (ERO) still exist?
No. It expired on July 1, 2016. If you paid ERO contributions, you can ask TRS Illinois for a refund of them.
Source: TRS Tier 1 and Tier 2 Member Guides, September 2026, Tier 1 Guide pp. 17, 18; Tier 2 Guide p. 18; Tier 2 meeting slides 7, 8, 18, 59, 63; TRS Illinois web page. Last reviewed .