A member is eligible to retire when:
- (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%.
- The member has earned and allowed service
credit totaling 25 or more years. This is
referred to as the “25 and Out”
provision.
- 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.