Retiring before 65: the WRS age reduction

Short answer: you can start a WRS annuity at 55. Starting before 65 (or before 57 with 30 years) cuts the formula benefit 0.4% a month before 57, and by less after 57 with long service. The cut is for life. See the formula, one more year and the accelerated payment option. Load a teacher retiring at 60 with 25 years in the calculator.

The rule

• Before 57: 0.4% off for each month before 65.
• From 57 to 65: the monthly cut is 0.4% minus 0.001111% for each month of creditable service. With 25 years (300 months) that's 0.4% − 0.3333% = 0.0667% a month.
• No reduction at 65, or at 57 with 30 years.

Non-protective annuities are reduced 0.4% per month between ages 55 and 57. Between age 57 and normal retirement age, the 0.4% is reduced by 0.001111% for each month of creditable service. The reductions are permanent. ET-4107 (rev 3/5/2025), p. 7, Normal Retirement Age

Statute: each full month, and each partial month of at least 15 days, before the normal retirement date counts. Wis. Stat. s. 40.23 (2m) (f) 1.

ETF's table

Factor by your age when the annuity starts (down) and your years of service. "30" means 30 or more.

In dollars

A teacher with $5,000 a month in final average earnings, all service from 2000 on, starting on the birthday shown:

Formula only, Life Only option, no Variable adjustment. Worked out with ETF's rule and checked against its table.

Not on a birthday

At 59 and 7 months with 25 years, you're 65 months short of 65, all after 57: 65 × 0.0667% = 4.336% off, a factor of .957. ET-4107 (rev 3/5/2025), p. 7, Normal Retirement Age; Wis. Stat. s. 40.23 (2m) (f) 1.

Other things that change the reduction

• The reduction may be less if you have partial years of non-teaching creditable service in at least 5 of the last 10 annual earnings periods before termination; ETF applies the lower reduction automatically. ET-4107 (rev 3/5/2025), p. 10, Age Reduction Factors (note)
• An employer may elect to pay part or all of the cost of the actuarial reduction. Wis. Stat. s. 40.23 (2m) (g)

What the sources say

• For teachers, normal retirement age is 65, or 57 with 30 years of creditable service. At that point there's no reduction.ET-2119 (6/18/2026), p. 3, If You Are Vested and Have Reached Minimum Retirement Age
• To get a retirement benefit you must be vested, at least 55, have ended all WRS employment, not be on leave or layoff, and file a Retirement Benefit Estimates and Application (ET-4301) that ETF receives before your death.ET-4107 (rev 3/5/2025), p. 2, Eligibility
• Your benefit can start the day after you terminate, or on the first of any later month. You can apply up to 90 days before you terminate; apply within 90 days after to avoid losing benefits.ET-4133 (rev 6/12/2026), pp. 3 and 6, How to Complete Your Retirement Application / Benefit Effective Date
• Payments are made for the previous month on the first business day: retire June 1, first payment July 1. Payments start on an estimate and ETF sends a final calculation 6 to 12 months later.ET-4133 (rev 6/12/2026), p. 8, Payments / Final Calculation
• You can retire as early as 55. Starting before 65 (or before 57 with 30 years) permanently reduces the formula benefit.ET-4107 (rev 3/5/2025), p. 7, Normal Retirement Age
• The reduction is 0.4% for each month before age 57. From 57 to 65, the 0.4% a month is cut by 0.001111% for each month of your creditable service, so long careers are reduced much less.ET-4107 (rev 3/5/2025), p. 7, Normal Retirement Age
• Examples from ETF's table: at 55 with 30 years the factor is .904 (9.6% less); at 60 with 25 years .960; at 62 with 20 years .952; at 55 with 10 years .648.ET-4107 (rev 3/5/2025), p. 10, Age Reduction Factors
• Even with 30 years, retiring at 55 or 56 is reduced 0.4% for each month before 57.ET-4107 (rev 3/5/2025), p. 10, Age Reduction Factors (row 30+)
• A partial month of 15 days or more before your normal retirement date counts as a full month of reduction.Wis. Stat. s. 40.23 (2m) (f) 1.
• Your employer may choose to pay part or all of the cost of the early-retirement reduction.Wis. Stat. s. 40.23 (2m) (g)
• The money purchase method has no early-retirement reduction as such: it uses a smaller age factor for younger ages (.00538 per dollar at 55, .00641 at 65).ET-4107 (rev 3/5/2025), p. 19, Table 2 Money Purchase Calculation Factors

Questions

See your own factor →