Updated October 22, 2026. Quick answer: The VSERS Group F plan description says a member can retire early after five years of service and age 55, with a 6% reduction for each year under age 62. There is no reduction at age 62 or with 30 years of service, and the plan description lists groups with no early retirement reduction. Vermont law sets different terms for Group F members first included in the system on or after July 1, 2008: normal retirement at age 65 with five years of service or at 87 points of age plus service, and an early retirement reduction for each month under age 65 that depends on years of service.
What this covers
The Group F plan description has an eligibility part and a calculation part, both headed “Early Retirement”. This page quotes both. For the wider choices, see Vermont VSERS and VSTRS retirement decisions and public pension retirement decisions.
What the plan description says
Each row is the plan description’s own wording.
| Topic | What the plan description says |
|---|---|
| Eligibility | “You are eligible for an early retirement benefit after you have completed five years of service and have attained age 55.” |
| The reduction | “A 6% per year early retirement reduction will be imposed for each year under the age of 62.” |
| No reduction at normal retirement | “For normal retirement at age 62 or with 30 years of service, there is no reduction in benefits for age.” |
| Members first included on or after July 1, 2008 | The plan description does not mention this group. Vermont law, 3 V.S.A. § 455(a)(13)(D), sets their normal retirement date at “the first day of the calendar month next following attainment of 65 years of age and following completion of five years of creditable service, or attainment of 87 points reflecting a combination of the age of the member and number of years of service, whichever is earlier.” Under 3 V.S.A. § 459(d)(2)(B) their early retirement allowance is reduced for each month the member is under age 65: one-eighth of one percent with 35 years of service, one-quarter of one percent with at least 30 but less than 35, one-third of one percent with at least 25 but less than 30, five-twelfths of one percent with at least 20 but less than 25, and five-ninths of one percent with less than 20. |
| Corrections and hospital facility staff | “If you have 20 years of service as a facility employee in the Department of Corrections, or are a direct care provider at the Vermont State Hospital, or a facility employee at Woodside, there is no reduction for early retirement.” |
| Fish and Wildlife, airport firefighting | “If you are an employee of the Department of Fish and Wildlife assigned to law enforcement, or are assigned to airport firefighting duties, there is no reduction for early retirement.” |
| State’s Attorneys, Defender General, Sheriffs | “A State’s Attorney, the Defender General, or a Sheriff who has completed 20 years of creditable service, of which 15 years has been as a State’s Attorney, the Defender General, or a Sheriff, shall have no early retirement penalty at age 55.” |
The reduction, worked out by age
The plan description states the reduction as “a reduction of 6% for every year you are under age 62” and also as half a percentage point for every month under 62. For a member first included before July 1, 2008, applying 6% times the whole years under 62, which is a computation on this page and not a table from the Treasurer, gives:
| Age at retirement | Years under 62 | Computation | Reduction |
|---|---|---|---|
| 55 | 7 | computed: 6% x 7 | 42% |
| 56 | 6 | computed: 6% x 6 | 36% |
| 57 | 5 | computed: 6% x 5 | 30% |
| 58 | 4 | computed: 6% x 4 | 24% |
| 59 | 3 | computed: 6% x 3 | 18% |
| 60 | 2 | computed: 6% x 2 | 12% |
| 61 | 1 | computed: 6% x 1 | 6% |
Ages that are not whole years follow the monthly form. Computed for age 58 and 3 months: there are 45 months under 62, and 45 times half a percentage point is 22.5%, so the benefit is reduced to 77.5% of the normal figure, which is the factor .775 in the plan description’s own example. That example multiplies 25 x .0167 x $35,000 x .775; recomputed that is $14,612.50 x .775, or $11,325 a year after rounding, matching the figure the plan description prints. The example calls the 25 years Group C service while using the .0167 multiplier the plan description gives for Group F service, so confirm the multiplier for your own group with the Retirement Office.
The vested option if you leave before 55
“If you have 5 or more years of service and leave state employment before age 55, you are entitled to a vested retirement benefit provided that you do not withdraw your contributions.” “Your vested retirement benefit is payable to you at age 62 (or as early as age 55 with a penalty applied)”. For a member first included on or after July 1, 2008, Vermont law puts the normal retirement date at 65 or 87 points, as set out in the table above.
Applying
“Retirement benefits are not automatic; you must apply for them.” “Contact the Retirement Office at least nine months prior to the date that you plan to retire for an estimate, application materials, and health insurance and tax forms.”
What the plan description does not say
The page does not print a sample for every age, and its worked example has the Group C label noted above. Ask the Retirement Office for an estimate before you choose a date. Vermont’s tax rules on the pension are on how Vermont taxes retirement income.
Edition
This page reads the Vermont State Treasurer, VSERS Group F Plan Description, the web page the Vermont Treasurer served on 2026-10-22. It describes Group F, which the page says covers state employees employed on or after January 1, 1991. Groups A, C and D and the teachers’ system (VSTRS) have their own plan descriptions, and Vermont law and your own member account control over this summary.
Common mistakes
- Retiring at 55 and expecting a full benefit. The plan description says “A 6% per year early retirement reduction will be imposed for each year under the age of 62.”
- Withdrawing contributions when leaving before 55. The vested benefit applies “provided that you do not withdraw your contributions.”
Related: Vermont VSERS and VSTRS retirement decisions, and public pension retirement decisions.
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Answer againSources
- Vermont State Treasurer, VSERS Group F Plan Description: www.vermonttreasurer.gov
- Related official page (not quoted): Vermont State Treasurer, retirement office: www.vermonttreasurer.gov
- Related official page (not quoted): IRS, Topic no. 558, Additional tax on early distributions: www.irs.gov
Read from the pension system handbooks linked above on October 22, 2026. General information, not tax advice. Your own facts decide the outcome, and a pension system or a qualified professional is the right place to confirm anything consequential.