Updated October 30, 2026. Quick answer: Maryland members enrolled on or after July 1, 2011 under the Reformed Contributory Pension Benefit qualify for a normal service retirement at age 65 with at least 10 years of eligibility service, or when age and eligibility service equal at least 90. An early service retirement is available at age 60 with at least 15 years of eligibility service, reduced .5% for each month before the 65th birthday, up to a 30% maximum. Vesting takes 10 years of eligibility service, and the pension is 1.50% of Average Final Compensation for each year of creditable service.
Who this covers
“New members enrolled in the Teachers’ Pension System on or after July 1, 2011 (and certain other members, see “Does this handbook apply to me”) are subject to the Reformed Contributory Pension Benefit.”
Normal retirement
“You qualify for a normal service retirement when you meet any of the following age or service criteria:” “Age 65 with at least 10 years of eligibility service”. “Combined age and years of eligibility service equal to at least 90 (for example, 58 years old with 32 years of eligibility service).” The Employees’ Pension System handbook uses the same age: “Age 65 with at least ten years of eligibility service”.
Early retirement
“You qualify for an early service retirement when you are at least age 60 with at least 15 years of eligibility service.” “The early service retirement benefit is a reduced benefit. Retirement benefits payable before age 65 are reduced .5% for each month (6% for each year) you retire prior to your 65th birthday. The maximum reduction is 30% (5 years x 6% per year).” The Employees’ handbook gives the same early age: “You qualify for an early service retirement when you are at least age 60 with at least 15 years of eligibility service.”
Vesting
“You are vested once you have earned at least 10 years of eligibility service.”
What the pension is based on
“The Basic Allowance under a normal service retirement is calculated as 1.50% of your Average Final Compensation for each year of creditable service that you have earned.” “Average Final Compensation: equals the average earnable annual earnable compensation during the five consecutive years that provide the highest average earnable compensation during your membership.”
A worked example with invented numbers
Take an invented member with 30 years of creditable service who retires at 65. That is 30 years at 1.50%, or 45% (computed) of a final average salary of $70,000 (invented, for the computation), which comes to $31,500 a year (computed).
Now take an invented member with 20 years of creditable service who retires at 62, which is 36 months before the 65th birthday. That is 20 years at 1.50%, or 30% (computed) of a final average salary of $70,000 (invented, for the computation), which comes to $21,000 a year (computed). The reduction is 36 months before age 65 at .5% each, which is 18% (computed). The pension after the reduction is $17,220 a year (computed).
What the documents do not say
The handbooks are dated April 2021, and no newer edition for the Reformed benefit was read, so later changes are not confirmed. The Employees’ Pension System handbook’s note on the early-retirement reduction prints with errors in the text read here, so the reduction rule is quoted from the Teachers’ Pension System handbook. The earlier benefit selections, State Police, law enforcement, judges, legislators and the Optional Retirement Program are not covered.
Common mistakes
- Reading 90 as an age. It is age plus years of eligibility service, for example 58 years old with 32 years.
- Ignoring the cap. The handbook puts the maximum early retirement reduction at 30%.
- Using this page for the Alternate Contributory, Contributory or Non-Contributory selections of earlier members. It covers the Reformed benefit.
Related: Maryland MSRPS retirement decisions, the Maryland MSRPS COLA for 2027, how public pension decisions work, and whether Maryland taxes pensions.
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Answer againSources
- Maryland State Retirement Agency, Teachers’ Pension System Benefit Handbook, Reformed Contributory Pension Benefit (April 2021): sra.maryland.gov
- Maryland State Retirement Agency, Employees’ Pension System Benefit Handbook, Reformed Contributory Pension Benefit (April 2021): sra.maryland.gov
- 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.