10.1. SR 07-01-2019 - Laserfiche WebLink

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A 9 PHASED RETIREMENT: option forrr r r .r membersrr• 62 and over If you, as a Coordinated mem- ber, are age 62 or over, you may be able to ease into retirement under something called a Phased Retirement. This option is entirely at the discretion of your employer. Under legislation passed this year, PERA's normal termination requirements and earnings limits are waived if you meet the require- ments of the special provision. Requirements wTo qualify; you must be age 62 or over and a vested member of PERA. You must also have worked a minimum of 1,044 hours in each of the five years immediately preceding the offer of a phased retirement by your employer or another PERA-cov- ered employer. wYou must agree that your hours of work will be reduced by at least 25 percent and will not exceed 1,044 hours per year. wThe initial phased retirement agreement cannot exceed one year. However, it maybe renewed for up to an addi- tional year. The total period of phased retirement may not exceed five years. wYou and your employer (or a new PERA-covered employer) must sign a Phased Retirement Agreement form provided by PERA. This is used in place of PERAs normal Termination Verification form. The benefits of the plan Normally; in order to receive a pension, members must formally terminate employment and have no prior agreement, either verbal or written, that they will be reem- ployed at a later date. In addi- tion, there must be a minimum 30 -day break in public service (paid or unpaid) if a member does return to work for a PERA-cov- ered employer. Members who return to PERA-covered employ- ment are subject to earnings limits if they are under Social Security's normal retirement age—exceeding the limits results in a reduction of the PERA pension. These restric- tions are eliminated under phased retirement. You will receive the full PERA pension you have earned, based upon your years of service, age at retirement, and high -five average salary. In addition, neither you nor your employer are required to make future contributions to PERA. Since you are now receiv- ing a pension, all further accrual of service credit or adjustment of the high -five average salary ceases. Employer's discretion Your employer is under no obli- gation to offer you a phased retire- ment or to renew any agreement that is made. You should also investigate the impact a reduction of hours may have on your other employee benefits. (Continued on reverse side)