A law enforcement officer qualifies for a reduced benefit after:
- reaching age 50 and completing 15 years of creditable service as an officer
- completing 25 years of creditable service with 15 years of creditable service as an officer
Early retirement benefits are figured using the same formula as for service retirement, and then applying a reduction factor. For example, a law enforcement officer who is age 53 with 25 years of service would receive 92 percent of the unreduced benefit based on the reduction formula.
The table below shows early retirement percentages at various ages and periods of creditable service.
If a law enforcement officer is between ages 50 and 55, with less than 30 years of creditable service, his or her early retirement benefit will be reduced to the following percentages:
| AGE | Years of Creditable Service | ||||||
| 29 | 28 | 27 | 26 | 25 | 20 | 15 | |
| 54 | 96% | 96% | 96% | 96% | 96% | 96% | 95% |
| 53 | 95% | 92% | 92% | 92% | 92% | 92% | 92% |
| 52 | 95% | 90% | 88% | 88% | 88% | 88% | 88% |
| 51 | 95% | 90% | 85% | 84% | 84% | 84% | 84% |
| 50 | 95% | 90% | 85% | 80% | 80% | 80% | 80% |
| 49 | 91% | 86% | 81% | 76% | 76% | N/A | N/A |
| 48 | 87% | 82% | 77% | 72% | 72% | N/A | N/A |
| 47 | 83% | 78% | 73% | 68% | 68% | N/A | N/A |
| 46 | 79% | 74% | 69% | 64% | 64% | N/A | N/A |
| 45 | 75% | 70% | 65% | 60% | 60% | N/A | N/A |
If the member is between birthdays when payments start, the reduction will be adjusted proportionately.
In this example, a law enforcement officer retires early at age 51, with an average final compensation of $41,209 and 24 years of creditable service.
| Here is how we calculate this benefit |
| (AFC) $41,209 |
| x 0.182 |
| $750.00 |
| (creditable service) x 24 |
| $18,000.00 |
| Now, apply the early retirement reduction percentage |
| $18,000.00 |
| (percentage at age 51) x .84 |
| $15,120.00 |
The law enforcement officer in this example receives a maximum allowance of about $15,120 a year, or about $1,260 a month, which stops when member dies unless he or she selected a survivor payment option. Additionally, this law enforcement officer would be eligible for benefits from the NC 401(k) Plan and may be eligible for benefits referenced in the “Separate Insurance Benefits Plan” section.
This page was last modified on 12/03/2024