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Leaving Employment

Every dollar you contribute to PERA is yours and goes into an account with your name on it. If you’re no longer working for a PERA-covered employer, you have two options with the balance of your Defined Benefit (DB) Plan account(s):

  • Leave your account(s) with PERA for a future rollover/refund or monthly benefit.
  • Do a rollover/refund of your account(s).

Leaving Your Account(s) With PERA

You may want to leave your DB Plan account(s) with PERA, especially if you anticipate returning to PERA employment or if you would like to receive a lifetime monthly benefit in the future. Your DB Plan account(s) will remain tax-deferred, continue to accrue interest, and you may do a refund/rollover at any time. You’ll remain a PERA member but you’ll be considered an inactive member since you won’t be contributing to your account.

If you leave your DB Plan account(s) with PERA until reaching the age and service credit requirements for retirement eligibility or age 65, you may request a lifetime monthly retirement benefit or do a refund/rollover of your DB Plan account(s).

Reasons to Leave Your DB Plan account(s) With PERA Until Retirement:

  • Your balance will continue to earn interest compounded annually (the interest rate is set by the PERA Board and is subject to change annually; currently the interest rate is 3%).
  • If you do a refund/rollover of your account prior to age 59½, in addition to regular federal and state income taxes, you may have to pay a 10% additional federal income tax for early distribution.
  • Most PERA members do not contribute to Social Security, so if you do a refund/rollover of your account, retirement savings for that period of employment are gone.
  • You will retain the rights associated with your PERA membership and will continue earning service credit if you return to PERA membership.
  • If you die before your effective date of retirement, your qualified survivors may be eligible for a survivor benefit and in some cases, a lump-sum payment.
  • If you choose to receive a monthly benefit, you may be eligible to participate in the PERACare Health Benefits Program and receive a subsidy toward your premium.

Refunding or Rolling Over Your Account(s)

You may roll over your PERA DB Plan account(s) to an IRA or eligible employer plan or refund it. If you do a refund/rollover of your DB Plan account(s), you forfeit any future right to a benefit.

Visit the Refunds and Rollovers page for details on how to do a refund or rollover.

Refunds and Rollovers

Learn about the process of requesting a refund or rollover of your PERA Defined Benefit Plan account, which can take up to 90 days.

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Leaving a PERA-Covered Job FAQs

Understand your options if you are leaving a PERA-covered employer and begin the process to refund or rollover your account.
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Inactive Members

Even if you’re no longer working for a PERA employer, you can keep your account balance with PERA and eventually apply for lifetime retirement income, request a refund/rollover of your account balance, or return to work for a PERA employer.