What does becoming vested mean?
Vested members are eligible for monthly retirement benefits or a lump sum benefit upon retirement. The laws that apply at the time of retirement govern the calculation of the memberβs benefit.
View the informational flyer for vested members.
How to become vested
There are a few different ways to become a vested IPERS member.
Regular members
As of July 1, 2012, regular members become vested after accruing seven years (28 quarters) of service, or are at least 65-years-old while working in IPERS-covered-employment, whichever occurs first.
Prior to July 2012, members vested with four years (16 quarters) of service or when they were at least age 55 working in IPERS-covered employment, whichever happened first. If you vested before July 1, 2012, you remain vested.
Special service members
You vest once you've accrued four years (16 quarters) of service or are at least 55-years-old while working in covered employment, whichever happens first.
Benefits of being vested
Vesting gives you a permanent future right to an IPERS benefit. Once you are vested, you gain access to the following:
Disability benefits
If you receive Social Security disability or Railroad Retirement disability benefits, you may be eligible for disability benefits from IPERS.
Death benefits
IPERS provides death benefits if you die before you begin receiving your retirement benefits. Death benefits are available to vested and nonvested members, but vested members are eligible for additional death benefits.
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 to return to covered employment or if you later want to draw monthly benefit payments from IPERS. You also can 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) or IRA.
Access to employer contributions
As an IPERS member, you're always entitled to 100% of your contributions and interest earnings. After you become vested, if you leave covered employment and take a refund, you will 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 30 (22 for Special Service).
Lifetime retirement benefits
Vested members can receive lifetime monthly retirement benefits as early as age 55 (50 for sheriffs and deputies with at least 22 years of service). An early-retirement reduction may apply.