Is it too early to start thinking about retirement?
What happens to my My Choice plan if I end employment?
Non-vested members (less than one year of participation)
If you leave your My Choice-covered position with less than one year of participation in the plan and your account balance is $1,000 or less, you must roll over your balance or take a lump sum payment. You cannot defer your account balance. If you do not request a distribution election within five years after your last day in pay, balances are automatically paid to you. Payment is made in a lump sum directly to you (minus the 20 percent federal income tax withholding and state and local taxes).
Vested members (have one or more years of participation)
If you have more than $1,000 or more than one year of service, your account balance will remain in the My Choice plan. Your money will remain in the account until you elect a final distribution, partial withdrawal, or until a minimum distribution payment is required. If your account balance falls below the required minimum balance to remain in the plan, you will receive the money in a lump sum.
If you are vested with a balance, your distribution options are:
- a lump sum (with or without a rollover),
- a direct rollover to another eligible plan, or
- a monthly annuity if you are age 62 with five years of participation and have an account balance of at least $15,000.
If you are a member of the My Choice plan and you leave your covered position and later return to a position covered by the My Choice plan, you are entitled to receive credit for your prior years of work in the plan.
New employees who elect the My Choice plan and then rehire or return to a covered position must continue membership in the My Choice plan, not the fund (PERF Hybrid).
For more information on the My Choice plan, go here.
2017 Legislative Summary
Changes made during the 2017 legislative session may have impacted your retirement plan. Click here for a brief summary of changes.