How do I get a distribution from PERF?
You may only get a distribution, that is, withdraw the balance of your ASA (in the form of a distribution or rollover to another qualified retirement plan) if you are no longer employed in a PERF-covered position. You cannot take money out of PERF as long as you continue your employment with a PERF-covered employer.
You may withdraw the amount in your ASA if you:
- are vested
- have terminated your employment and have not been rehired into another covered position within 30 days
- are eligible for a reduced or unreduced retirement benefit
If you are eligible for an early retirement, you will be able to withdraw your ASA without forfeiting your retirement benefit or be forced to take an irrevocable early retirement with a reduced pension benefit for life.
ASA distributions consist of:
- the 3 percent mandatory contributions made either by you or by your employer on your behalf;
- any voluntary contributions (if applicable); and,
- all accumulated interest and earnings credited to your account.
If you receive the money directly, rather than rolling it into another tax-deferred account, the total amount paid to you will be reduced by:
- a federal 10 percent penalty if you are 59 and a half or younger,
- 20 percent federal withholding, and, optionally, state withholding.
To receive a distribution, you can log in to your PERF Online account to initiate your request for a distribution. You may also call (888) 526-1687 to initiate your distribution request via phone with a customer service representative.
The distribution is of the amount in your ASA. There are no distribution provisions for the PERF defined benefit (pension) because that money belongs to your employer until you become eligible to receive a retirement benefit from PERF. If you are vested, there are significant consequences for any future pension.
There are a variety of payment options when withdrawing your ASA.
Separation from employment
Except under limited circumstances, PERF does not permit an in-service distribution. Therefore, PERF is prohibited from making distributions from the fund, including the ASA, prior to a member’s separation from employment.
You should not apply for a distribution if you intend to move from one position to another within a participating employer. A true separation from service only occurs if you leave PERF-covered employment and do not return to employment with ANY participating employer within 30 days from your date of termination. If you continue uninterrupted employment in any capacity (full-time or part-time) in any agency or department of your current employer – regardless of whether your new position is a covered position or not – you will not be considered separated from employment. A PERF member's application for retirement benefits is also void if the member has an agreement, formal or informal, prior to their retirement, with a covered employer to become re-employed in a covered position.
