How do I earn a pension from PERF?
You earn a pension benefit by working in a PERF-covered position for at least 10 years (vested status) and retiring on or after the date on which you reach the minimum eligible age. The pension benefit is funded entirely by your employer.
Two terms are very important in understanding how you earn the pension portion of your two-part benefit.
Creditable Service
You will receive service credit for each period of continuous employment in a covered position. In addition, you may be entitled to service credit during military service and certain types of leave.
All members, except school corporation employees, must work 12 months in a PERF‑covered position to obtain one year of service credit. A school corporation employee who works the full school term or contract period for their position will receive credit for one year of service. Otherwise, service credit for school corporation employees will be granted for actual time worked.
All creditable service is subject to verification and is contingent upon compliance with the law governing such service. The service must be certified as creditable by the governing body of the employer or its agent.
Vested Status
Vesting is the right to receive a benefit from a retirement fund at a future date when you become age eligible. Vested status in the Public Employees’ Retirement Fund means you have at least 10 years of creditable service. When you become vested, you will be entitled to pension benefits when you meet the age requirements for either normal or early retirement, which are listed below.
| NOTICE ON VESTING |
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| If you leave covered employment after becoming vested but before becoming age eligible to receive pension benefits, you will retain your rights for a future claim of your Defined Benefit Pension only if you leave your Annuity Savings Account funds invested with PERF. Your Annuity Savings Account will continue to be credited with interest and investment earnings until you begin receiving a retirement benefit payment. Effective Jan. 1, 2009, PERF members who elect to withdraw their entire Annuity Savings Account are still entitled to receive their pension when retirement eligible, if they are vested, terminate their employment after Dec. 31, 2008, and do not perform service in a position covered by the fund for at least 90 days after terminating employment. |
