Purchasing Service Maximizing Your IPERS Benefits

Why Purchase Service?

Here are some reasons a service purchase may be the right choice for you. By purchasing service, you may:

• Increase the amount of your IPERS benefits. The multiplier used to calculate your IPERS benefits will be higher, up to the maximum, if you have more service credits. This in turn increases the amount of your IPERS benefits.
• Eliminate an early retirement penalty. Your benefits may be reduced if benefits begin before you reach normal retirement age. Purchasing service could help you meet the qualifications for normal retirement age, eliminating or reducing the early retirement penalty.
• Get credit for time you do not currently have in IPERS. A service purchase gives you IPERS service credit for time when you would otherwise not have received IPERS service credit. See the Types of Purchases topic in the left-hand menu for the types of service purchases.
• Maximize your death benefits. When you purchase service, you take money you might invest somewhere else and invest it with IPERS. IPERS provides guaranteed lifetime benefits. Your preretirement death benefit will be increased with a service purchase if you die before retirement. Depending on the benefit payment option you choose at retirement, your beneficiary(ies) may receive a larger death benefit if you die after retirement. Other investments may not provide this security.

You may transfer/roll over other retirement plan benefits to purchase service. If you have money in another retirement plan or account, you may be eligible to transfer that money (roll it over) to IPERS. You will be able to use the money to purchase IPERS service. There are restrictions on the types of accounts that can be rolled over to IPERS. See Using Rollover Money to Purchase Service in the How to Purchase Service topic in the left-hand menu for more information.