For Members Retiring
Congratulations on Your Upcoming IPERS Retirement |
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Applying for Benefits
Please note that you cannot begin receiving retirement benefits until after you terminate employment with all IPERS-covered employers. However, you may receive your last paycheck after your termination date and be entitled to retirement benefits. For example, you could terminate employment June 30 and receive your last paycheck July 8, but your first month of entitlement to retirement benefits would be July. If you are age 70 and still working for an IPERS-covered employer, you may begin to receive IPERS retirement benefits while still employed. Please keep in mind that you must begin receiving your IPERS retirement benefits by April 1 of the year after the year in which you turn 70½ if you are no longer employed by an IPERS-covered employer.
Before benefits are payable, you must complete a benefit application. You should file a completed application 60 days before the month in which you want benefits to begin. For example, if you are entitled to begin monthly benefits in July, your application should be filed in May. An incomplete or untimely benefit application may delay payment or result in a loss of benefits. An application is not final until a completed application is received and has been reviewed and approved by IPERS.
For a benefit application and estimate, call IPERS at 515-281-0020 or toll-free at 1-800-622-3849.
Proof of Birth Date
All applications must include proof of your birth date. Proof also needs to be submitted for your beneficiary if you elect Option 4 or Option 6. A photocopy of a birth certificate or infant baptismal certificate is preferred. For additional information about acceptable alternatives for birth date proof, see the application.
| Benefit Application Checklist |
IPERS recommends submitting a completed application 60 days before the month in which you want pension benefits to begin. Keep these things in mind when completing the application.
- Complete all sections of the application. IPERS will return incomplete applications, which could delay payment or result in a loss of benefits.
- Include necessary proof(s) of birth date.
- Mark your payment option choice (if choosing Option 1, be sure to indicate the guaranteed death benefit amount).
- List beneficiary(ies) for Option 1, Option 2, Option 4, Option 5, or Option 6.
- Include a voided check for direct deposit.
- Complete IRS Form W-4P, which will be included with your benefit application.
- Include all necessary documentation for disability benefits, if applicable.
- Both you and your spouse, if applicable, will need to sign the application in front of a notary.
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Direct Deposit of Pension Checks
Direct deposit is an easy and safe way to receive your monthly pension benefits. IPERS will electronically transfer funds the last business day of each month to your checking or savings account. This saves you the hassle of having to worry about depositing your check each month. There is no cost for direct deposit, unlike for paper checks, which have an administrative fee of $1 per check. If you wish to participate in this program, be sure to provide a voided check with your application and complete the direct deposit section of the application.
Disability Benefits
If you are applying for disability benefits, be sure to complete the section of the application titled “Disability Retirement.” Indicate that you have applied for or have been awarded social security or railroad retirement disability benefits, even if the disability award is still pending. You will also need to provide a photocopy of the letter of award indicating the month that you have been awarded social security or railroad retirement disability benefits.
Small Benefit Cashouts
If the value of your benefit would be less than $50 per month under Option 2, you will receive a lump-sum payment.
Timing of Payments
Benefits are paid the last business day of the month for which the payment is issued. For example, if you submit an application to begin benefits in January, the payment for January will be paid the last business day of January.
The first payment will be based on your earnings through the last quarter for which IPERS-covered wages have been reported by your employer. If subsequent earnings are reported, your benefit will be automatically recalculated and any increase due to you will be paid retroactively.
Important Tax Information
At least part of your IPERS pension benefit will be subject to federal income tax and, for Iowa residents, s tate income tax. As part of the application process, you need to complete IRS Form W-4P, which will be included with your benefit application.
You have different withholding options. Before completing the IRS Form W-4P, you should:
- Consult your tax advisor.
- Review the instructions that accompany the IRS Form W-4P.
- Carefully read the Special Tax Notice and Supplemental Notice.
Keep in mind that you can update your withholding after benefits begin at any time by completing a new IRS Form W-4P.
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