For Vested Members— Sheriffs and Deputy Sheriffs Congratulations on Becoming a Vested IPERS Member!

Rights of Vested Members

Vesting entitles you to special rights under the plan. You become vested when you meet one of these conditions:

• You have completed 4 years of service.
• You are age 55 and are making contributions to the plan.

Vesting gives you a permanent future right to an IPERS benefit, in addition to the benefits described below.

Purchasing Service
There may be instances when you need (or want) additional service to help you increase your retirement benefits so you can retire when you are ready. Vested members are eligible to purchase service for certain periods of time that they were away from IPERS-covered employment.

You may purchase service or be eligible for free credit for disability leaves and service in the Armed Forces. You may also purchase service for legislative service, if you withdrew contributions (took a refund), worked for another public or private employer, or have not elected coverage for previous employment.

For more information about purchasing service or free credit that can be obtained, please see the IPERS “Purchasing Service” brochure or contact IPERS.

Portability of Benefits
If you leave IPERS-covered employment, you can choose to leave your money in IPERS. This may be helpful if you plan on returning to covered employment. You can also take a refund or roll over all or a portion of your investment and a portion of your employer’s investment to a qualified plan like a 401(k) plan or IRA.

Access to Employer Contributions
If you leave covered employment and take a refund, you can receive a portion of your employer’s contributions made on your behalf plus interest. The portion is the percentage calculated when your years of service are divided by 22.

You are always entitled to 100 percent of your own contributions and interest earnings. Vested members can receive benefits in the form of a monthly benefit payment or a lump-sum amount that can be rolled over to another qualified plan.

Disability Benefits
If you qualify for disability benefits from IPERS, your benefits can begin before the age you would normally be eligible for benefits and will not be reduced for early retirement. You may have a choice between two types of disability benefits: Special Service disability benefits and regular disability benefits.

Special Service Disability Benefits
To be eligible for Special Service disability benefits, you must meet all of the following conditions:

• Be vested.
• Apply for benefits within 1 year after terminating IPERS-covered employment.
• Complete a medical exam by the Medical Board of the University of Iowa.

You may qualify for Special Service disability benefits even if you are not receiving federal disability benefits. If IPERS determines that you qualify, you will receive an estimate of the benefits for which you are eligible. Disability payments you receive from Social Security, long-term disability insurance, workers’ compensation, unemployment insurance, and an employer-paid benefits disability for the same disability will reduce the amount of disability benefits you may receive from IPERS. You will need to provide IPERS complete copies of your state and federal tax returns every year.

If you return to IPERS-covered employment after beginning to receive Special Service disability benefits, benefits will stop immediately. If you return to non-IPERS-covered employment, benefits may be limited.

Regular Disability Benefits
To qualify for regular disability benefits, you must meet all of the following conditions:

• Have ended all IPERS-covered employment.
• Be vested.
• Be receiving federal social security or railroad retirement disability benefits.
• Apply for benefits. You must indicate on your application for IPERS retirement benefits that you are retiring due to a disability.

If you return to covered employment after beginning to receive regular disability benefits from IPERS and before you attain age 55, your benefits may be suspended or reduced.

Choosing Between Special Service Disability Benefits and Regular Disability Benefits

Unlike regular members, you may have a choice between two very different types of disability benefits. Here is a brief description of some of the major differences.

One of the major differences is taxability. Generally, Special Service disability benefits are nontaxable, if your disability resulted from an in-service injury. However, even Special Service benefits are taxable if you choose benefit payment Option 2. If you have a substantial amount of service credit, you may find that the regular disability benefits, even though taxable, provide the larger net amount. Death benefits payable to your beneficiary(ies) will receive the same tax treatment that you were receiving.

If you retire with Special Service disability benefits, you may qualify for up to 6 months of retroactive benefits. However, if you retire with regular disability benefits, you may qualify for up to 36 months of retroactive disability benefits.

If you retire with Special Service disability benefits and later qualify for social security disability benefits, you have 60 days to convert your Special Service disability benefits to regular IPERS disability benefits, if you decide that is a better choice. The switch is irrevocable. A member who first retires with regular disability benefits cannot switch to Special Service disability benefits.

Finally, Special Service disability benefits are subject to an offset for workers’ compensation, unemployment, and employer-paid disability benefits, whereas regular disability benefits are not.

As you can see, there are many variables to consider when choosing whether to apply for Special Service disability benefits or regular disability benefits. Although IPERS representatives cannot make the choice for you, we can help you make an informed choice based on your personal situation.

Death Benefits
IPERS provides death benefits in the event that you die before beginning to receive your IPERS retirement benefits. Death benefits are available to vested and nonvested members, but vested members are eligible for additional death benefits. In addition, you may be eligible for a line-of-duty death benefit payable if you die on the job.

When you began working in covered employment, you should have completed and submitted an Enrollment/Beneficiary Designation Form to IPERS. It’s important to review your beneficiary information periodically as your personal situation may change. The form is also available by calling IPERS at 515-281-0020 or toll-free at 1-800-622-3849.