Sign up today by completing a PERS Election Change Discontinuation by richman6

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									                                                                                                                                                                               PERS Tier I, II, and III
                                                                                                            The information in
                                                                                                                                                                               Defined Benefit Retirement System
Sign-up today by completing a “PERS Election, Change,                                                       this brochure is not
                                                           What Tier am I?                                  intended to replace
Discontinuation or Withdrawal of Voluntary Employee
Savings” form. Contact the plan administrator for infor-
mation or to request a form. You can also download the
form from our website at www.state.ak.us/drb.
                                                           Members who first entered a PERS position
                                                           and were making contributions:
                                                                                                            the Alaska Statutes
                                                                                                            or the Alaska
                                                                                                            Administrative
                                                                                                                                                                                     Voluntary
                                                             ➢ Before 7/1/86—Tier I.
                                                             ➢ On or after 7/1/1986, but before
                                                                                                            Code. Language
                                                                                                            contained in the
                                                                                                            Alaska Statutes
                                                                                                                                                                                    Savings Plan
                                                               7/1/1996—Tier II.                            and the Alaska
                                                             ➢ On or after July 1, 1996, but before         Administrative Code
                                                               7/1/2006—Tier III.                           govern the plans.




                                                                                                                                   Alaska Division of Retirement and Benefits
                                                           This brochure only applies to Tiers I, II, and
                                                           III.




                                                           Alaska Division of
                                                           Retirement and Benefits
                                                           State Office Building
                                                           333 Willoughby Ave., 6th floor
                                                           PO Box 110203
                                                           Juneau, AK 99811-0203
                                                           Fax: (907) 465-3086
                                                           In Juneau (907) 465-4460
                                                           1-800-821-2251

                                                           TDD for the hearing impaired
                                                           (907) 465-2805

                                                           Email:
                                                           doa.drb.retirementprocessing@alaska.gov

                                                           pers048

                              4                            www.state.ak.us/drb                                                                                                                    October 2007
                                            Voluntary Savings Plan
                                            What is the Voluntary Savings Plan?              How much can I contribute to a                                   Life Annuity With a Five-Year Certain Period–Monthly
                                                                                             Voluntary Savings Plan?                                          payments for your lifetime. If you die before 60 pay-
                                            The Voluntary Savings Plan, also known                                                                            ments have been made, your beneficiary will receive the
                                            as the Employee’s Savings Account, is an         You are eligible to contribute a minimum of $5.00 and up to      balance of the remaining payments.
                                            account funded solely by post-tax, voluntary     5% of your gross salary to a Voluntary Savings Plan.
                                            contributions from a Public Employees’                                                                            Life Annuity With a Ten-Year Certain Period–Monthly
                                            Retirement System (PERS) employee.                                                                                payments for your lifetime. If you die before 120 pay-
                                            Contributions made to a Voluntary Savings        Can I change the amount I want to contribute                     ments have been made, your beneficiary will receive the
                                            Plan are separate and completely independent     to my plan?                                                      balance of the remaining payments.
                                            of the mandatory contributions that each
Alaska Division of Retirement and Benefits




                                            PERS employee is required to make to the         You can change the amount you are contributing at anytime.       Installments over a designated period of time:
                                            retirement system as an active employee.         The change will take effect the first of the month following      The account balance, plus interest, is disbursed to
                                                                                             receipt of the change form.                                      you on a monthly basis. The balance of your account
                                                                                                                                                              would be divided by the number of months you desig-
                                            Who is eligible to enroll in the                                                                                  nated payment to be made.
                                            Voluntary Savings Plan?                          Why would I choose to enroll in the
                                                                                             Voluntary Savings Plan?                                          Taxes:
                                            Any active employee under Tier I, II or III                                                                       Although the post-tax contributions that are made to
                                            that is making contributions to the PERS         The Voluntary Savings Plan provides an opportunity for em-       a Voluntary Savings Plan would not be taxed when
                                            is eligible to enroll in the Voluntary Savings   ployees of the PERS to invest their money in an account that     payment is made, the interest that accrues on Voluntary
                                            Plan.                                            will accrue 4.5% interest until the funds are disbursed to the   Contributions is considered income and is taxable upon
                                                                                             employee in the form of a lump sum payment, life annuity,        payment of the account.
                                                                                             or installments over a designated period of time.
                                            When can I enroll?
                                                                                             Lump Sum Payment:                                                When can I start to receive payment from
                                            You can enroll at anytime. Enrollment will                                                                        my Voluntary Savings Plan?
                                                                                             A Lump Sum Payment is a full cash withdrawal of your con-
                                            take effect the first of the month following
                                                                                             tributions to the savings plan, plus interest.
                                            receipt of the election.                                                                                          There is a 60-day waiting period after retirement or
                                                                                             Life Annuity:                                                    termination from employment before payment can
                                            Can I terminate or suspend my                    Life Annuity–A monthly benefit is calculated and disbursed to     be made from a Voluntary Savings Plan. However, an
                                                                                             you during the course of your lifetime. Monthly benefits will     exception can be made for those who can provide proof
                                            enrollment?                                                                                                       of a hardship. If a payment request meets the criteria
                                                                                             cease in the event of your death, however, if you die before
                                                                                             the full account balance is paid, the remaining balance would    for a hardship, an active employee can potentially access
                                            You can terminate your enrollment at any-
                                                                                             be paid to your beneficiary.                                      funds from their account.
                                            time. Termination will take effect the first of
                                            the month following receipt of the form to
                                            discontinue.




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