Chapters

00:00 Introduction to PERS Retirement

00:30 Understanding PERS Tiers

01:33 Vesting Requirements Explained

02:41 Disability Retirement Options

04:16 Action Items for Retirement Planning

04:59 Conclusion and Next Steps

Transcript

Hi everyone, I'm Ryan Earley, host of the PERS Pro YouTube channel. At some point all PERS members asked themselves, when can I retire? We're answering that question and more in today's video. Let's get started.

To know when you can retire, you first have to know your tier. PERS has four different tiers based on your hire or entry date into the system. Your entry date determines which set of rules applies to your retirement. Tier one, this is those that joined on or before June 30th, 1992. Tier two, this is for those that joined July 1, 1992 to June 30, 2007. Tier 3, this is for those that joined July 1, 2007 to June 30, 2011. And Tier 4, this is for those that joined July 1, 2011 or later. It is important to note that if you leave covered employment, but leave your funds in your account, you remain in your original tier even if you return to work years later. This is critical to keep in mind as the new Tier 5 with reduced defined benefits is implemented.

Now that you know your tier, let's talk about vesting real quick. Vesting is the magic number of years you must work in order to be eligible to retire. Let's look at a table showing vesting and age requirements to retire and service credit requirements for early retirement for each tier. After meeting vesting requirements for your tier, either 4 or 8 years, you can retire at age 60 in any tier. You do not need to have 25 or 30 years of service credit to retire after reaching age 60. You only need to be vested. If you want to retire early before age 60, then you must meet the service credit requirement for your tier. As you can see, for tiers 1 through 3, you can retire at any age once you hit 25 years of service credit. For Tier 4, that requirement moves to 30 years of service credit. In future videos, we will cover various ways in which you can accumulate service credit, including working and PERS eligible employment, certifying unused leave, purchasing eligible service credit, and from active military service.

Life doesn't always go according to plan. If you become permanently disabled and can no longer perform your job duties, PERS provides a safety net through disability retirement. There are two distinct paths here to eligibility depending on how the injury occurred. Non-duty related: The cause is an illness or injury outside of work. The requirement to retire is you must be vested. This is four years for tiers one through two and eight years for tiers three through four. Duty related: The cause of this is an injury sustained while performing job duties. Requirement, there's no vesting required. You are covered from day one. For either option, you must apply within one year of terminating your employment and provide medical evidence that you can no longer perform your specific job.

Here are your action items to take today. One, identify your tier. Compare your entry date to those dates listed in the tier table to identify your tier. Two, determine your vesting date. This will be either four or eight years after your entry date. Three, determine if you can retire at age 60. This requires your vesting date to be on or before age 60. Four, determine if you can retire early. This requires you to accumulate either 25 or 30 years of service credit before age 60.

I hope this video helps you understand the earliest date and age at which you can retire. In our next video, we'll be revealing data showing the average age at which PERS members retire and the average years of service at which PERS members retire. Please make sure you subscribe so you don't miss this and other videos in our new retirement series. If you found this video helpful, can thank me by hitting the thumbs up button and sharing it with other PERS members. If you have a follow up question about PERS or anything else related to personal finance, please visit our website at perspro.ms and submit your question or topic for a future episode. Thank you for your valuable public service to the state of Mississippi. We'll see you next time.

Disclaimer, this video is for educational and informational purposes only. Neither the host nor this YouTube channel are officially affiliated with, endorsed by, or sponsored by the Public Employees Retirement System of Mississippi. Always consult a qualified professional for personal advice specific to your situation.