Leaving IPERS-Covered Employment Before Retirement
Choosing the Best Alternative For You |
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About the IPERS Plan
The IPERS Plan was established to help Iowa public employees have a financially secure retirement. The retirement benefits provided by IPERS are one part of your overall retirement savings. Your total retirement income will come from a combination of your IPERS Plan benefits, Social Security, personal savings, and any other retirement plan benefits.
IPERS is a defined benefit plan, which means the retirement benefits you receive from IPERS are calculated using a formula. When you become vested, you have a right to future retirement benefits. Vesting also entitles you to other rights under the IPERS Plan (see the "For Vested Members" topic for more information).
You become vested when you meet one of these conditions:
- You complete 4 years of service.
- You attain age 55 and are making contributions to the Plan.
You and your employer contribute to IPERS. You are always entitled to 100 percent of your contributions and interest earnings. When you become vested, you have a right to a portion of your employer’s investment based on your years of service.
The Refund Value of Your IPERS Account
The refund value of your IPERS account includes your contributions, any employer contributions you are entitled to, and interest earnings. You must be vested in order to receive any of your employer's contributions.
To calculate the portion of your employer’s contributions you are eligible to receive, divide your years of service by 30 if you are a regular member or 22 if you are a Special Service member. Special Service members include sheriffs, deputy sheriffs, police officers, firefighters, and other protection occupations.
| Example |
| Jenny, a regular member, has 12 years of covered service when she terminates employment. She is eligible to receive 40 percent of her employer's investment [12 years ÷ 30]. |
Alternatives When You Leave IPERS-Covered Employment
If you leave IPERS-covered employment after at least six months of work and before retirement, you have several alternatives regarding what you can do with your IPERS money. You may:
- Leave your money in IPERS.
- Roll over your money to another retirement plan.
- Take a refund.
| Your Alternatives |
If you leave IPERS-covered employment after at least six months of work and before retirement, you can decide what to do with your IPERS money.
- Alternative 1: Leave your money in IPERS until you retire or choose another alternative.
- Alternative 2: Roll your money over to another retirement plan.
- Alternative 3: Take a refund.*
To leave your money in IPERS, you do not need to do anything. To roll over your money or to take a refund, you must submit a written application.
Before you stop working in IPERS-covered employment, it’s a good idea to contact IPERS. An IPERS representative will explain the impact your length of service has on your IPERS benefits. Sometimes working a few additional weeks can make a big difference in the benefits you are eligible to receive.
*If you worked in IPERS-covered employment for less than six months, your employer may file a wage report adjustment with IPERS which will result in your contributions being returned to you. |
When IPERS Participation Continues Automatically
If you change jobs or employers, but continue working in IPERS-covered employment, your IPERS participation continues automatically. Most Iowa public employees are IPERS members. IPERS-covered employers include:
- Schools
- State agencies
- Counties
- Cities
- Townships
- Other public employers
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