1. (The members age and earned service credits add to the sum of 75 or more. This is referred to as the “Rule of 75”. A benefit reduction will apply if the member is under 60 years of age. A reduction of a member’s benefit is applicable only when the member is less than age 60 and has less than 25 years of earned service credit. The reduction is 2.4% for each of the first five years under age 60 plus 7.2% for each year under age 55. Age is considered in quarters; for example the reduction at age 59 ½ in 1.2%.
2. The member has earned and allowed service credit totaling 25 or more years. This is referred to as the “25 and Out” provision.
3. The member’s age is 65 or more with at least five years of earned service credit. This is often referred to as the “65 plus 5” provision. The member is "vested" after 5 years of earned service.

REMINDER: Earned service is credit for employment with an administrative unit in New Mexico. Allowed service credit is included in the computation of the member’s retirement benefit and is also included in determining retirement eligibility in the “25 and Out” retirement provision; but is not included in determining retirement eligibility under the “Rule of 75”.

When members have accrued five or more years of “earned service credit”, they may terminate employment, leave their contributions in the retirement fund and retire: (1) when their age and years of “earned service credit” (see above paragraph) add to the sum of 75 or more, or (2) at age 65, whichever is sooner. To receive retirement benefits when the eligibility requirements are met, a member must make application directly to the Educational Retirement Board. This should be done sixty to ninety days before the desired effective date of retirement.