About IPERS The Rewards of IPERS Membership

Membership Has Rewards

Saving for retirement is important. Be sure you’re prepared so you can enjoy your retirement years and have peace of mind. IPERS benefits are designed to supplement personal savings and social security benefits. Consider these rewards of IPERS membership.

Security

For over a half century, IPERS has provided Iowa’s public employees with retirement income. IPERS invests and safeguards over $20 billion in assets for members’ retirement, death, disability, and termination benefits, and collects over $500 million in contributions from employers and members annually. The benefits paid to members are guaranteed: they are not tied to the performance of the stock market. With IPERS, you get a dependable, solid retirement investment.

A Guaranteed Benefit

Since IPERS provides a defined benefit, you don’t have to worry about monitoring where your money is invested or how the stock market performs. It’s easy and worry-free. You have the option of receiving your benefits as a monthly lifetime payment—which means you can never outlive your benefits.

The amount of your benefit is based on a formula that factors in your years of service, age, and highest 3-year average salary. By design, IPERS takes on all the investment risk; with a defined contribution plan, you take on the investment risk and must ensure your investment grows at a sufficient rate to provide benefits for your lifetime.

Protection Against the Unexpected

IPERS provides death and disability benefits. These benefits provide important protection for you and your family.

If you die before beginning to receive IPERS benefits, your beneficiary(ies) may be eligible for a one-time lump-sum payment or monthly benefits. If you die after you have started receiving your monthly benefits, your beneficiary(ies) may be eligible for a benefit depending on the benefit payment option you elected.

You may be eligible for an IPERS disability benefit if you meet certain requirements.

In many cases, a defined contribution plan provides neither of these benefits to its members.

Public Accountability

The Iowa Legislature and the Governor are the plan sponsors for IPERS. The Legislature and Governor determine benefits provided for members and oversee the administration of the plan. These elected officials want to ensure they provide a retirement plan that meets the needs of their constituents.

The Legislature authorizes spending from the Trust Fund for administrative expenses other than investment management expenses.

IPERS closely monitors and negotiates what it pays to investment portfolio managers, does not spend money on costly advertising campaigns, and manages itself with a lean and efficient staff. Limiting administrative expenses allows IPERS to use its assets to pay out benefits and ensures the long-term funding of the plan.

Portability if You Change Jobs

You are always entitled to 100 percent of your contributions and interest earnings.

If you change jobs and move to another IPERS-covered position, you can maintain your IPERS coverage. If you take a job with a non-IPERS-covered employer, you may leave your money in IPERS, roll over your IPERS account to another qualified retirement plan, or take a refund.

If you are vested, leave IPERS-covered employment before you retire, and decide not to leave your money in IPERS, the amount you take with you will include a portion of your employer’s investment based on your years of service in addition to your own investment. You become a vested IPERS member when you accrue 4 years of service or when you reach age 55 and are making contributions to IPERS, whichever occurs first.

Retirement Planning Resources

IPERS goes beyond providing guaranteed and secure retirement benefits. Through IPERS, you have access to resources to help you plan for a secure retirement. You can speak one on one with a representative who can answer your questions and address your individual situation. In addition, online resources and periodic mailings keep you informed about the plan and your IPERS benefits.