14 \\ How Much Will Your Pension Benefit Be? Amount of Early Retirement Pension for Participants Covered by the Preferred Schedule If you retire on an early retirement pension and are covered under the Preferred Schedule, your early retirement pension equals your normal pension determined as if you were 65 years old, reduced for early commencement by applying the applicable early retirement reduction factor in the chart below (also see Table Thirteen) for each year, or portion of year, you are younger than age 65 when you retire. Retirement Age Early Retirement Factor Sample $1,000 Accrued Benefit 55 0.366 $366 56 0.401 $401 57 0.441 $441 58 0.485 $485 59 0.534 $534 60 0.59 $590 61 0.653 $653 62 0.723 $723 63 0.804 $804 64 0.895 $895 65 1 $1,000 Amount of Early Retirement Pension for Participants Covered by the Default Schedule If you retire on an early retirement pension and are covered under the Default Schedule, your early retirement benefit will consist of two parts. (A) For benefits earned before your RP Schedule ffective Date, the normal pension determined as if you were 65 years old, re- duced by four tenths of one percent (.004) for each month by which you are younger than age 65 when you retire, plus HERE IS AN EXAMPLE: Steve stops working at age 55 with 15 years of credited service and submits his completed pension application. The amount of his monthly normal pension if Steve starts receiving payments at age 65 is $1,000. Under the Preferred Schedule, if Steve retires in 2025 at age 55, his early retirement pension is calculated as follows: Early retirement reduction factor at age 55 (.366) x $1,000 benefit = $366 As a result, Steve’s total monthly early retirement pension benefit would equal $366 (63.4% reduction). Steve would receive an early retirement pension of $366 per month if he retires and starts his pension immediately at age 55 under the Preferred Schedule.