What decisions will I need to make in order to retire?
Making decisions on how many years you should work and when you should actually retire can have a significant impact on your future.
If you are a member of the PERF Hybrid plan, you must submit your retirement application no later than 90 days in advance of the retirement date you choose to ensure timely payment of your first monthly benefit amount.
When you choose to retire and begin receiving benefits from PERF, you will be asked to make several decisions, including:
- Retirement date;
- Your pension payment option (hybrid plan only);
- Your Annuity Savings Account payment option, or to defer payment of your Annuity Savings Account, as described below;
- Beneficiary selection;
- Tax withholding.
These are the major questions you will need to answer, and PERF provides retirement counseling and benefit estimates to help you weigh all your options.
Retirement Date
The effective date of your retirement benefits can be no earlier than the first day of the month following your last day in pay status.
To go from receiving your paycheck to receiving your first benefit payment with no delay, it is critical that you plan ahead for the exact date of your retirement. You should send or deliver your Retirement Application to PERF no later than 90 days before your effective date of retirement. Processing a retirement application involves information that comes from both PERF and your current and previous employers. Please take care to complete the Retirement Application properly. Processing will be interrupted by missing or incorrect information, which will delay your first monthly benefit payment.
You may not wish to submit a retirement application as soon as you become eligible for pension benefits. Remember, however, that PERF may, by law, only pay up to six months of retroactive benefits. Any additional time between your eligibility to retire and your actual retirement date will be lost if that time exceeds six months. For example, if you become eligible to receive benefits in January and you wait until October to submit your retirement application, ten months have passed. PERF will only pay you six of those ten months in retroactive benefits.
| IMPORTANT NOTICE |
|---|
| Federal law prohibits the Public Employees' Retirement Fund from making distributions from the Fund prior to "separation from employment." Uninterrupted service in any capacity or re-employment that, in effect, is a continuation of employment prevents PERF from making distributions to the employee from the Fund. Therefore, you should not apply for retirement benefits if you will continue uninterrupted employment in any capacity (full-time or part-time, in a PERF covered position or a position not covered by PERF) in any agency or department of your current employer. |
Election to Defer Payment of Annuity Savings Account at Retirement
You may choose, upon retirement, to defer receiving your Annuity Savings Account and continue investing the monies in the option of your choice. As of the first day of any given month during retirement, you may elect to receive your annuity balance under any of the annuity choices offered. You must begin withdrawal of your annuity balance in the year following the year you become age 70 ½ in accordance with applicable IRS regulations. For further information, contact the PERF office.
Minimum Distribution Requirements
Members of PERF are required to comply with the “minimum distribution” requirements under the Internal Revenue Code. Generally, under these requirements, a member who has separated from employment with his or her PERF-covered employer must begin receiving a distribution from PERF no later than April 1 of the calendar year following the year in which the member reaches age 70 ½.
Counseling Before Retirement
You will need to schedule an appointment with PERF in order to receive the timely and complete service needed to plan for retirement. If you are within one year of receiving retirement benefits, contact our office to make an appointment with a PERF retirement counselor.
