Leaving IPERS-Covered Employment Before Retirement Choosing the Best Alternative For You

Alternative 1: Leave Your Money in IPERS

If you leave IPERS-covered employment before retirement, you may leave your money in IPERS until you are ready to:

• Roll your money over to another retirement plan.
• Take a refund.
• Begin retirement benefits, if eligible (which is generally after you are vested and age 55 or older).

If you decide to leave your money with IPERS, your account will continue to earn interest.

What You Need to Do

If you want to leave your money in IPERS, you do not need to do anything. Your money will automatically remain in the Plan. If you later decide to roll over your money to another retirement plan or take a refund, you can apply at any time.

If you leave your money in IPERS, keep these things in mind:

• Get benefit estimates. If you are vested and entitled to an IPERS retirement benefit, you may contact IPERS at any time to receive a benefit estimate showing the estimated retirement benefit you are eligible to receive.
• Update address information. Keep your address updated with IPERS to ensure you receive important information about your IPERS benefits.
• Update beneficiary information. Keep your beneficiary information up to date with IPERS. If you need to designate or change your beneficiary, call IPERS or do it online using the Enrollment/Beneficiary Designation form.
• Applying for retirement benefits. If you are vested, you may keep your money in IPERS until you are eligible and ready to begin receiving retirement benefits. Benefits may begin as early as age 55, or before age 55 if you are awarded social security disability benefits or railroad retirement benefits. To apply for retirement benefits, contact IPERS.

Special Considerations

Each member’s situation is different. While we cannot tell you what to do with your money if you leave IPERS-covered employment, here are some times when it might make sense to leave your money in IPERS:

• You plan to return to IPERS-covered employment in the future. If you decide to return to IPERS-covered employment, the service credits you earned before you left employment will remain on file if you keep your money in IPERS.
• Your new employer’s plan has a waiting period before you are eligible to participate. Consequently, you cannot roll your money from IPERS into your new employer’s plan until the waiting period ends.
• You left IPERS-covered employment and do not have another employer-sponsored retirement plan available to roll your contributions over to.
• You are unsure what to do with your IPERS contributions. While you decide what to do, you can leave your money in IPERS and let it earn interest. If you decide later that you want to take a cash refund, you may apply for the refund at that time.
• You don’t want to worry about managing your investment. IPERS manages how Plan assets are invested so you don’t have to worry about making investment decisions.
• You want to keep access to IPERS death benefits. By leaving your money in IPERS, you continue to provide your beneficiary with protection in the event of your death.