{"data":{"id":"us-in/ic-5-10.2-4-5","jurisdiction":"us-in","citation":"IC 5-10.2-4-5","heading":"Early retirement percent reduction","body":"Sec. 5. The retirement benefit (rb) payable on and after July 1, 1975, for a member who retired on and after January 1, 1956, before age sixty-five (65) is the sum of the pension (P), as specified in section 4 of this chapter and computed on the basis of the total creditable service and the average of the annual compensation at retirement, multiplied by a percent (p), plus the annuity (A), if any, purchasable by all or part of the amount credited to the member in the annuity savings account. This sum is obtained by the following STEPS:\nSTEP ONE: From seven hundred eighty (780) months, which equals sixty-five (65) years, subtract the age of the member at the member's retirement date expressed in whole months (retirement age in months) and obtain a remainder (X).\nSTEP TWO:\n(A) If the remainder (X) is less than or equal to sixty (60), then multiply the remainder (X) times one-tenth percent (0.1%) and obtain a product (Y).\n(B) If the remainder (X) is greater than sixty (60), then multiply five-twelfths percent (5/12%) times the difference obtained by subtracting sixty (60) from the remainder (X) and obtain a product. Add to this six percent (6%) and obtain a sum (Y).\nSTEP THREE: From one hundred percent (100%) subtract the appropriate (Y) and obtain the percent (p).\nSTEP FOUR: The early retirement benefit equals (p) times (P) plus the annuity (A).\nExpressed mathematically:\nIf \"\u003c\" means \"less than or equal to\" and if \"\u003e\" means \"greater than\"; then:\n(I) 780 - (retire age in months) = X;\n(II) if X \u003c 60, (X) times (0.1%) = Y; or\nif X \u003e 60, (5/12%) times (X-60) + 6% = Y\n(III) 100% - Y = p\n(IV) rb = pP + A","path":["TITLE 5. STATE AND LOCAL ADMINISTRATION","ARTICLE 10.2. PUBLIC RETIREMENT AND DISABILITY BENEFITS","Chapter 4. Retirement and Disability Benefits"],"source_url":"https://iga.in.gov/ic/2026/Title_5.html#5-10.2-4-5","current_through":"2026","vintage":"2026","retrieved_at":"2026-09-02T16:11:39Z","sha256":"6d6d37e39d25ffbb18f2956abc42911b9a2a6721c706a701f042e4e63997a5e3","source_id":"us-in","stale":false,"prev":"us-in/ic-5-10.2-4-4","next":"us-in/ic-5-10.2-4-6"},"notice":"GroundRules: Original legal text. Not legal advice."}