leaving_employment_5-19-09 by doocter

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									                                                                                                                                    5/19/09




   Leaving PERF-Covered Employment
                                 Indiana Public Employees’ Retirement Fund


                                                                           Leaving PERF-covered employment
Will I lose my PERF                 and have between nine and
account when I leave                11 years of service credit, you        does NOT mean you leave PERF!
my job?                             may wish to check with PERF
There are two parts to the          to verify your actual vested           You do have options with your PERF account. The
PERF benefit structure.             status.
                                                                           choices you make can have a big impact on your
The first part is the Annuity
Savings Account (ASA). This         Can I leave my money                   later years. This fact sheet explains these choices
money is yours. There are           invested in PERF
requirements for withdrawing        if I am not working                    and how each might impact your life. If you have
this money, but leaving your        in a PERF-covered                      questions, please contact PERF.
PERF-covered job does               position?
not reduce or eliminate this        Yes! The funds in your ASA
benefit. The second part is the     belong to you even if you are
pension benefit. To be eligible     no longer working in a PERF-
for a pension when you retire,      covered position. You are           Will PERF ever lose                  covered position, you have the
you must meet certain age           under no obligation to take a       track of where I am?                 responsibility of keeping your
requirements and be vested.         distribution before you reach       After you leave PERF-covered         personal information up-to-
                                    70 1/2 years of age. You will       employment, PERF no longer           date. If you have not received
How do I know if I’m                not be able to contribute any       receives contributions or wage       a quarterly statement within
vested?                             more money to your account if       reports for you. PERF maintains      the past four months, please
Vested in the PERF plan             you are not in a PERF-covered       all the information related to       contact PERF to get a change
means that a member has             position, but you will be able to   your account and reports from        of address form or change
at least 10 years of PERF-          remain in any of PERF’s current     your employer(s) in member           your address using PERF
covered service. You earn           investment options. You will        files. You should receive a          Online at www.perf.in.gov. Be
service by working in a PERF-       also continue to receive quar-      quarterly statement (every           sure the beneficiary named in
covered position, but may also      terly statements and be able to     three months) with the details       your account is the person you
be eligible for service credit if   change your investment option       of your ASA investments and          intend.
you have military service leave     choices. If you are not vested      an annual statement (yearly)
or other authorized leaves.         and you do not return to PERF-      with the details of your wages       ABOUT
Information about service is        covered employment within 10        and service. Unfortunately,          DISTRIBUTIONS
available on the Web site or in     years, your investments in the      members often forget to tell         Can I withdraw my
the PERF Member Handbook,           Guaranteed Fund will no longer      PERF when they move or               ASA?
which is available at www.          earn interest. If you are vested,   experience a life change that        When you leave PERF-covered
perf.in.gov. Members also           you can simply remain invested      might require them to name a         employment before retirement,
receive an annual member            in PERF until you apply for         new beneficiary.                     you may be tempted to take
statement detailing service         retirement. Your PERF account                                            a distribution of your ASA.
credit. If you are thinking of      will be available whenever you      Regardless of whether you are        Although taking a distribution
leaving employment or retiring      choose a distribution.              currently employed in a PERF-        may give you money to cover

                                                                                                             —continued on reverse side



                                                                                                  Yo u r g o a l s … o u r c o m m i t m e n t .
Continued Information on Leaving PERF-Covered Employment
immediate expenses, you may         How do I get a                      if you have at least 10 years       retirement age, even if you
end up walking away with            distribution of my ASA?             of service and are at least age     never return to PERF-covered
less than expected. If you are      You must submit a distribution      65 or are at least age 60 with      service.
under age 59 1/2 when you           application to PERF after           15 years of service. You may
leave employment and take           separating from employment.         also apply for full benefits if     What do I do if I have
a distribution, you may be          Forms are available on PERF’s       you meet the Rule of 85, which      recently become
required to pay an additional       Web site, www.perf.in.gov,          requires that a member’s age        disabled?
10 percent tax unless you           or by mail. You must choose         and years of service total 85.      To qualify for a PERF disability
qualify for certain exemptions      whether to take your ASA as a       To qualify under the Rule of        retirement, you must have at
set forth by the Internal           single cash distribution or roll    85, you must be at least age        least five years of creditable
Revenue Service. Before you         it over into another qualified      55 with 30 years of service.        service and qualify for Social
receive the money, PERF must        retirement account. Some            If you have 15 years of service     Security benefits. A member
also withhold 20 percent as         of your ASA contributions           and are age 50 through 59,          who becomes disabled while
pre-payment of your current         may have been made with             you are eligible for a reduced      receiving a salary or employer
year’s federal income tax.          money you have already paid         benefit amount. The amount of       provided income protection
Depending on your income            taxes on (post-tax) and some        the reduction is a percentage       benefits, or who is on leave
tax bracket, you could owe          contributions may have been         of the full amount based on         under the Family and Medical
additional taxes on your total      made before taxes were paid         your age and years of service       Leave Act, is entitled to receive
income at tax time.                 (pre-tax). The application          at retirement. See the PERF         benefits effective the month
                                    includes further explanations.      Member Handbook for more            following the Social Security
If I take an ASA                    You may wish to speak with a        details.                            disability onset date.
distribution, do I still get        tax advisor before making your
a pension?                          distribution choices.               PERF must verify service with       When applying for benefits,
The law recently changed to                                             all of a member’s past PERF         you will be required to provide
allow members to withdraw           What is a rollover                  employers; therefore, process-      PERF with a Social Security
the entire amount of their          distribution and how do             ing your retirement application     Disability Award Letter which
Annuity Savings Account             I take it?                          will take time. Submit your         must show the onset date of
and still receive their pension     Rather than take a cash             application no later than 90        your disability. PERF cannot
when retirement eligible. A         distribution of your ASA, you       days prior to your retirement       process your disability without
member is eligible to withdraw      can roll money into a qualified     date. PERF cannot process           this information. Qualified
their ASA and not lose their        retirement account outside of       your application until all in-      members will be entitled to
pension if they are vested,         PERF, such as an IRA or certain     formation from you and your         receive PERF disability benefits
terminate their employment          employer retirement plans.          employer(s) is submitted. The       for as long as they continue to
after Dec. 31, 2008, and do not     (Your funds are not reduced         first payment will include any      be eligible for Social Security
perform service in a PERF-          by taxes or penalties.) Consult     retroactive benefits owed. For      disability benefits. You are
covered position for at least       with your tax advisor for further   more information, go to PERF’s      required to notify PERF if
90 days after terminating their     information on taxes.               Web site and click on Bridge to     your Social Security disability
employment. Once you are                                                Retirement.                         benefits are terminated.
vested and meet eligibility         ABOUT RETIREMENT
requirements, you will receive      How do I apply for my               If you are not old enough to
a pension check every month         retirement benefits?                retire when you leave PERF-
after you retire for the rest       Retirement from PERF means          covered employment but are
of your life! If you are not        you receive a monthly pension       vested, you do not need to do
vested you will not qualify for a   benefit payment. You can apply      anything. Your PERF benefits
pension benefit.                    for full PERF retirement benefits   will be there when you reach


 What do I do now? Remember that you can fill out applications in advance, but you are not actually eligible to receive any
 PERF benefit (retirement or distribution) until after your last wage earning day with your PERF employer. PERF distributions always
 require some information that must be supplied by that employer. For further information and assistance, check the Web site,
 www.perf.in.gov, or call customer service toll-free, (888) 526-1687.


                143 West Market Street < Indianapolis, IN 46204 < toll-free: (888) 526-1687 < www.perf.in.gov

								
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