Which rate applies depends on your tier, and the cut comes off the formula benefit. Waiting or working a little longer shrinks it month by month (see one more year), and you can try your own dates in the calculator (a Tier 2 example is filled in).
The rule
Vested members may retire from age 55 with a permanent reduction. Tier 1 Grandfathered: 6% a year (0.5% a month) before the earlier of age 65 or the Rule of 85. Tier 1 Non-grandfathered and Tier 2: 8% a year (0.6667% a month) before the earlier of age 65 or the later of age 60 and the Rule of 90. The rule date uses current service (no future service). Months are counted to the first day of the month coincident with or next following that date. Handbook p. 18, Early Retirement; NDCC 15-39.1-12; NDAC 82-05-04-01; Valuation (2026) p. 37, Early Retirement
- Tier 1 Grandfathered: 0.5% for each month before the earlier of age 65 and the Rule of 85.
- Tier 1 Non-grandfathered and Tier 2: 0.6667% for each month before the earlier of age 65 and the later of age 60 and the Rule of 90.
NDCC 15-39.1-12(1), (2); NDAC 82-05-04-01
The handbook and statute say 8% a year; NDAC 82-05-04-01 says 0.6667% a month, which is 8.0004% a year (e.g. 80.004% instead of 80% for 10 years early). Our calculator uses the administrative code's monthly rate because it is how the reduction is applied; the difference is under $1 a month on typical benefits. Tier 1 Grandfathered: 6% a year = 0.5% a month exactly.
Handbook p. 18; NDCC 15-39.1-12(2); NDAC 82-05-04-01| Years early | Months | Tier 1 Grandfathered | Tier 1 Non-grandfathered / Tier 2 |
|---|---|---|---|
| 0 | 0 | 0% | 0% |
| 1 | 12 | 6% | 8.0004% |
| 2 | 24 | 12% | 16.0008% |
| 3 | 36 | 18% | 24.0012% |
| 4 | 48 | 24% | 32.0016% |
| 5 | 60 | 30% | 40.002% |
| 6 | 72 | 36% | 48.0024% |
| 7 | 84 | 42% | 56.0028% |
| 8 | 96 | 48% | 64.0032% |
| 9 | 108 | 54% | 72.0036% |
| 10 | 120 | 60% | 80.004% |
Examples (our numbers, $60,000 final average salary)
| Member | Unreduced date | Months early | Cut | Monthly |
|---|---|---|---|---|
| Tier 1 Grandfathered, 55 with 20 years | age 65 (Rule of 85 comes later) | 120 | 60% | $800.00 |
| Tier 1 Grandfathered, 58 with 25 years | Rule of 85 at 60 | 24 | 12% | $2,200.00 |
| Tier 2, 59 with 31 years | age 60 (the minimum age) | 12 | 8.0004% | $2,851.99 |
| Tier 1 Non-grandfathered, 57 with 28 years | Rule of 90 at 62 | 60 | 40.002% | $1,679.94 |
| Tier 2, 55 with 10 years | age 65 (no rule before 65) | 120 | 80.004% | $199.96 |
Without a cut, the last example would pay $1,000.00 a month. A Tier 2 member far from the Rule of 90 gives up about four-fifths of the benefit by starting at 55.
The handbook's examples of the rules
- Tier 1 Grandfathered: age 55 with 30 years qualifies for an unreduced benefit. Handbook p. 17
- Tier 2: age 60 with 30 years qualifies for an unreduced benefit. Handbook p. 17
NDAC 82-05-04-01 reduces 'for each month' the early retirement date precedes the reference date. With a mid-month (15th) retirement date the gap includes a half month; the rule does not say whether it counts.
What we do: a partial month counts as a full month (larger reduction)
What would settle it: A MyTFFR benefit estimate for a 15th-of-the-month retirement date, or RIO's written answer.Neither the handbook nor the statute says how fractional service (e.g. 0.929 years) and age are combined to date the Rule of 85/90. We convert the shortfall to months and days.
What we do: age in exact months plus days; the rule is met on the first day age + service >= 85/90
What would settle it: A RIO benefit estimate for a member near the Rule of 85/90 with fractional service.From the sources
- A vested member can retire with no reduction at age 65, or earlier under a rule: Tier 1 Grandfathered when age plus service reaches 85 (for example 55 with 30 years); Tier 1 Non-grandfathered and Tier 2 when age plus service reaches 90 and you are at least 60 (for example 60 with 30 years).Handbook p. 17, Eligibility For Benefit; NDCC 15-39.1-10(1)
- Dual members can count NDPERS (defined benefit) and Highway Patrol service toward vesting and the Rule of 85 or 90, at most one year per fiscal year. The benefit itself uses TFFR service unless you choose the combined calculation.Handbook pp. 4-5, Dual Membership; NDCC 15-39.1-10.3
- Vested members can retire from age 55 with a permanent reduction. Tier 1 Grandfathered: 6% a year (0.5% a month) before the earlier of age 65 or the Rule of 85. Tier 1 Non-grandfathered and Tier 2: 8% a year (0.6667% a month) before the earlier of age 65 or the later of age 60 and the Rule of 90.Handbook p. 18, Early Retirement; NDCC 15-39.1-12; NDAC 82-05-04-01
- The Rule of 85 or 90 date used for the reduction is based on the service you have when you retire, not service you might have earned by staying.NDCC 15-39.1-12; NDAC 82-05-04-01
- Check with TFFRA Tier 2 member who retires at 55 and would not reach the Rule of 90 before 65 has 10 years of reduction: about 80% off the formula amount.Handbook p. 18; NDAC 82-05-04-01
Questions
How early can I retire from TFFR?
At 55, once you're vested. The cut is permanent.
How big is the early cut?
6% a year (0.5% a month) for Tier 1 Grandfathered; 8% a year (0.6667% a month) for Tier 1 Non-grandfathered and Tier 2, for each month before your unreduced date.
What is my unreduced date?
The earlier of age 65 and your rule date. Tier 1 Grandfathered: when age plus service reaches 85. The others: the later of age 60 and when age plus service reaches 90. It uses the service you have when you retire.
Does the rule of 90 work before 60?
No. In Tier 1 Non-grandfathered and Tier 2 you must also be at least 60.
Source: Teachers' Fund for Retirement Member Handbook, 5/7/2026, pp. 4-5, 17, 18. Also: Valuation (2026); NDCC 15-39.1-10, 15-39.1-10.3, 15-39.1-12; NDAC 82-05-04-01. Last reviewed .