Updated October 30, 2026. Quick answer: Washington PERS Plan 2 members can retire with a full benefit at age 65 with five or more years of service. Members who are 55 or older with at least 20 years of service credit can retire early, with a reduced benefit. For members hired on or after May 1, 2013 who retire at 55 to 64 with 30 years of service credit, the reduction is 5% for each year before age 65. The DRS page also says that a member with 30 or more years of service who is age 62 can retire with a full benefit under the 2008 ERF; it names no hire date, and the handbook describes a different, smaller reduction for members hired on or before April 30, 2013. The pension is 2% of average final compensation for each year of service.
Full retirement
“You need 5 or more years of service to qualify for a retirement with PERS Plan 2. Full retirement age is 65.” The handbook agrees: “You are eligible to retire at age 65 if you have at least five years of service credit.”
Vesting
“With PERS Plan 2, you need five years of service to qualify for a retirement.”
Early retirement
“If you retire before age 65, it’s considered an early retirement. If you have at least 20 years of service credit and are 55 or older, you can choose to retire early, but your benefit will be reduced.” For members hired on or after May 1, 2013, the handbook says: “Hired on or after May 1, 2013: To retire early, you must be at least 55 and have 20 or more years of service credit.”
The reduction
With 30 years of service credit: “If you were hired on or after May 1, 2013 and retire early (age 55-64) with 30 years of service credit, your benefit will be reduced by 5% for each year (prorated monthly) before you turn age 65.” With 20 to 30 years of service credit: “If you retire early with 20-30 years of service credit, your monthly benefit is reduced by a factor that is based on your average life expectancy.” The actuarial factors are printed in tables, so they are not copied here.
Age 62 with 30 years
The DRS page states: “If you have 30 or more years of service and you are age 62, you can retire with a full benefit under the 2008 ERF.” That sentence names no hire date. For members hired on or before April 30, 2013 the handbook says: “Hired on or before April 30, 2013: To retire early, you must be at least 55 and have 20 or more years of service credit. There is less of a benefit reduction for early retirement if you have 30 or more years of service credit.” The two documents do not line up on how much smaller the reduction is, so ask DRS which rule applies to your hire date.
What the pension is based on
“2% x service credit years x Average Final Compensation = monthly benefit”. “The Average Final Compensation, or AFC is the average of your 60 consecutive highest earning months in your career.”
A worked example with invented numbers
Take an invented Plan 2 member with 30 years of service credit who retires at 65. That is 30 years at 2%, or 60% (computed) of a final average salary of $70,000 (invented, for the computation), which comes to $42,000 a year (computed).
Now take a member hired on or after May 1, 2013 who retires at 60 with 30 years of service credit. That is 30 years at 2%, or 60% (computed) of a final average salary of $70,000 (invented, for the computation), which comes to $42,000 a year (computed). The reduction is 5 years before age 65 at 5% each, which is 25% (computed). The pension after the reduction is $31,500 a year (computed).
What the documents do not say
The actuarial factors for retiring with 20 to 30 years of service are printed in tables on the DRS page, which says they can change, so this page does not state them. The handbook copy read is dated November 2020 and is hosted by a county, not by DRS, and it only confirms age 65 and the 55 and 20 rule. PERS Plan 3 and the TRS plans are not covered, and Plan 2 and Plan 3 differ.
Common mistakes
- Assuming the age 62 with 30 years sentence on the DRS page reaches a member hired on or after May 1, 2013. The DRS page applies 5% for each year before 65 to that group, and the 62 sentence itself names no hire date.
- Assuming five years of service allows retirement before 65. Early retirement needs age 55 and at least 20 years of service credit.
- Using this page for Plan 3 or TRS. They are different plans and are not covered.
Related: Washington PERS Plan 2 retirement decisions, the Washington PERS Plan 2 COLA for 2027, how public pension decisions work, and whether Washington taxes pensions.
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Answer againSources
- Washington State Department of Retirement Systems, PERS Plan 2: www.drs.wa.gov
- Washington State Department of Retirement Systems, PERS Plan 2 Handbook: www.piercecountywa.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.