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This section only applies to members of the 1977 Fund. “Converted” members of locally administered funds who elected to be covered by the 1977 Fund provisions are not eligible for a distribution of contributions.
If you end your employment other than by death or disability before you complete twenty (20) years of service, you may apply for a distribution of your member contributions plus accumulated interest. To initiate a request for a distribution, you can log in to your PERF Online account. You may also call (888) 526-1687 to initiate a distribution request by phone with a customer service representative. Your account will earn interest for a period of five years. If you are continuing employment in a non-1977 Fund covered position with the same employer, your account will earn interest until you separate from employment.
If you have at least twenty (20) years of service and decide to terminate employment before you are age eligible for a retirement benefit, your member contributions will be held until you become eligible for a benefit (age fifty (50) for a reduced benefit, or age fifty-two (52) for an unreduced benefit). Your member contributions will be used to help fund your retirement benefit.
If you terminate employment before you complete twenty (20) years of service, you can withdraw your six percent (6%) member contributions and accumulated interest from the 1977 Fund. You may elect to have the distribution paid directly to you, or you may direct the 1977 Fund to make a direct rollover of the distribution amount.
If you elect to withdraw your member contributions and you do not make a direct rollover of the distribution, it is subject to a mandatory twenty percent (20%) federal income tax withholding on the taxable portion (state tax withholding may also apply). The payment is taxed in the year you receive it unless, within sixty (60) days, you roll it over to an eligible IRA or an eligible employer plan that accepts rollovers.
If you receive a distribution of your six percent (6%) member contribution before you reach age fifty-five (55) and you do not roll it over, then, in addition to the regular income tax, you may have to pay an early distribution tax penalty equal to 10 percent of the taxable portion of the payment. For more information, contact our Customer Service Center at (888) 526-1687, Monday through Friday from 8 a.m. to 8 p.m. EST. You may also e-mail to email@example.com.
A direct rollover is a direct payment of some or all of the amount of your distribution of 6 percent member contributions to an eligible IRA or an eligible employer plan (such as a 403(b) tax sheltered annuity, a 457 deferred compensation plan), or a 401 qualified plan that will accept it. You can choose a direct rollover of all or any portion of your payment that is an eligible rollover distribution. You are not taxed on any taxable portion of your payment for which you choose a direct rollover. You are taxed when you elect a distribution of a taxable amount from that plan.
In addition, there is no income tax withholding on the amount you roll over. For more information, contact our Customer Service Center at (888) 526-1687, Monday through Friday from 8 a.m. to 8 p.m. EST. You may also e-mail to firstname.lastname@example.org.
Section Seven: Taxation of Retirement Benefits