Updated October 30, 2026. Quick answer: IMRF Tier 2 members need at least 10 years of service credit and can retire as early as 62, with 67 as the full retirement age. Tier 1 members need at least eight years and can retire at 55, with 60 as the full retirement age. Retiring early reduces the pension 1/2% for each month under 67 in Tier 2 (with less than 30 years of service) and 1/4% for each month under 60 in Tier 1.
Tier 2 eligibility
IMRF’s Tier 2 page requires: “Must have at least 10 years of service credit (can include reciprocal retirement system service credit).” On age: “Must be at least age 62. Although you can retire as early as age 62, age 67 is your full retirement age. Your pension may be reduced if you retire before age 67, depending upon the amount of service credit you have.”
The Tier 2 reduction
The IMRF manual for authorized agents sets the reduction. “If a Tier 2 member retires between the ages of 62 and 67 with less than 30 years of service credit , the pension will be reduced by 1/2% for each month the member is under age 67.” For members with at least 30 but fewer than 35 years: “with at least 30 but less than 35 years of pension service credit, the pension will be reduced by the lesser of 1/2% for each month the member is under age 67 or 1/2% for each month of service less than 35 years.” “If the member has 35 or more years of pension service credit, the full amount of the pension will be paid, even if the member is between the ages of 62 and 67.”
Tier 1 eligibility
IMRF’s Tier 1 page requires: “Must have at least eight years of service credit (can include reciprocal retirement system service credit).” On age: “Must be at least age 55.” The same page adds that age 60 is the full retirement age.
The Tier 1 reduction
“If a Tier 1 member retires between the ages of 55 and 60 with less than 30 years of service credit , the pension will be reduced by 1/4% for each month the member is under age 60.” “If the member has 35 or more years of pension service credit, the full amount of the pension will be paid, even if the member is between the ages of 55 and 60.”
What the pension is based on
Formula: “1-2/3% of your FRE (up to the wage cap) for each of the first 15 years of service credit, plus 2% of your FRE(up to the wage cap) for each additional year of service credit over 15 years.” Tier 2 final rate of earnings: “the FRE used to calculate your pension will be your highest total earnings during any 96 consecutive months within your last 10 years of IMRF service, divided by 96.” Tier 1 uses a shorter period: “Under Tier 1, the final monthly rate of earnings is the sum of the highest total earnings during any 48 consecutive months within the last 10 years of service divided by 48.” The cap: “Your total pension at retirement cannot exceed 75% of your final rate of earnings.”
A worked example with invented numbers
Take an invented Tier 2 member with 25 years of service credit who retires at the full retirement age. That is 15 years at 1-2/3% plus 10 years at 2%, or 45% (computed) of a final average salary of $60,000 (invented, for the computation), which comes to $27,000 a year (computed).
Now take the same member retiring at 62 instead, with 25 years of service credit. That is 15 years at 1-2/3% plus 10 years at 2%, or 45% (computed) of a final average salary of $60,000 (invented, for the computation), which comes to $27,000 a year (computed). The reduction is 60 months under age 67 at 1/2% each, which is 30% (computed). The pension after the reduction is $18,900 a year (computed).
What the documents do not say
The pages read do not state the enrollment date that separates Tier 1 from Tier 2 in running prose, so this page does not give one; your IMRF statement shows your tier. The reduction sentences come from IMRF’s manual for authorized agents (2021), because the member pages print the reduction mostly in a table. The Sheriff’s Law Enforcement Personnel plan, Elected County Officials plan and the Early Retirement Incentive are not covered.
Common mistakes
- Assuming 62 is the normal age in Tier 2. IMRF calls 67 the full retirement age and reduces the pension before it.
- Applying the Tier 1 age of 55 to a Tier 2 member.
- Forgetting the 35-year exception. A member with 35 or more years of pension service credit is paid in full even between the early and full ages.
Related: Illinois IMRF retirement decisions, the Illinois IMRF COLA for 2027, how public pension decisions work, and whether Illinois taxes pensions.
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Answer againSources
- Illinois Municipal Retirement Fund, Tier 2 Regular Retirement Benefits for Inactive IMRF Members: www.imrf.org
- Illinois Municipal Retirement Fund, IMRF Manual for Authorized Agents 5.20 B. 8 Under Age 67 Reduction: www.imrf.org
- Illinois Municipal Retirement Fund, Tier 1 Regular Retirement Benefits for Inactive IMRF Members: www.imrf.org
- Illinois Municipal Retirement Fund, IMRF Manual for Authorized Agents 5.20 B. 7 Under Age 60 Reduction: www.imrf.org
- Illinois Municipal Retirement Fund, IMRF Manual for Authorized Agents 5.20 B. 1 Regular Plan Pension: www.imrf.org
- Related official page (not quoted): IRS Tax Topic 410, Pensions and annuities: www.irs.gov
- Related official page (not quoted): IRS Tax Topic 411, Pensions: the General Rule and the Simplified Method: www.irs.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.