What Is Public Employees Retirement System
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Understanding the Public Employees' Retirement System
Overview
The Public Employees' Retirement System (PERS) is a mandatory retirement plan for most government employees, excluding teachers and students. New members must complete an application when they start employment. The system provides retirement benefits calculated based on years of service and average salary, and also includes survivor and disability protections.
Key Features
- Survivor and Disability Protection: PERS ensures members receive financial security in case of disability or, for their beneficiaries, in the event of their passing.
- Early Retirement Option: Employees with 30 years of service may opt for early retirement.
- Death and Beneficiary Benefits: PERS offers benefits to nominated beneficiaries upon a member's death.
Contributions
Employees contribute a percentage of their salary to PERS, currently at 8.5%, increasing to 9.5% by 2007. Employer contributions range from 13% to 17%. Benefits at retirement depend on both these contributions and legislative guidelines specific to each state. Members are encouraged to understand their specific benefits to maximize their retirement package.
Eligibility Criteria
To join PERS, employees typically need to meet the following conditions:
1. Regular Employment: Must be a regular employee with an annual salary of $1,500 or more.
2. Social Security Coverage: The position must fall under Social Security coverage.
Common Ineligibility Factors
Certain conditions may render individuals ineligible for PERS:
- Salary below $1,500 annually.
- Positions not covered by Social Security.
- Temporary employment status.
- Employment funded by the Job Training Partnership Act's federal funds.
- Students employed by their educational institutions.
- Inmates in correctional facilities.
- Patients in mental health or retardation institutions.
Understanding these rules is crucial for government employees to ensure they meet the criteria and benefit from the system upon retirement.
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