Plan Information FAQs

Members and employers contribute to PERA’s hybrid defined benefit plan, which is a substitute for Social Security for most members, and provides monthly lifetime income in retirement. Some members have the option to choose to between the PERA Defined Benefit (DB) Plan and the PERA Defined Contribution (DC) Plan. This option to choose is called PERAChoice. 

Also called a pension, PERA’s DB Plan provides for lifetime monthly income to members in retirement. Members contribute a portion of their pay on a tax-deferred basis to their member account at PERA. Member accounts also earn interest, compounded annually, and are only ever used to provide retirement benefits to members. 

Members qualify for a monthly lifetime benefit at retirement (based on their age, highest average salary, and service credit) with the option to provide a surviving benefit to one person. The average age at retirement in 2020 was 58.9 with 22.8 years of service credit for an average monthly benefit of $3,204. 

Members qualify for a monthly lifetime benefit at retirement (based on their age, highest average salary, and service credit) with the option to provide a surviving benefit to one person. The average age at retirement in 2020 was 58.9 with 22.8 years of service credit for an average monthly benefit of $3,204. 

Instead of the lifetime monthly benefit, members can take a lump sum distribution of their member account, plus interest, upon termination of employment, which may include a match. It is due to this “hybrid” and portable nature that PERA works for both short-term and longer-term career employees.

PERA invests its assets for the sole benefit of its members and believes that the most effective and efficient long-term strategy is to invest in a broad array of asset classes. Investment portfolio income is a significant source of revenue for PERA. Because PERA benefits are payable over decades, the fund is broadly diversified within and across all asset classes to limit volatility and maximize returns. 

New employees with PERAChoice can choose the PERA DC Plan as their retirement plan instead of the DB Plan. The PERA DC Plan is similar to a 401(k) plan in the private sector, with both the employee and employer making contributions from each paycheck to fund the member’s investment account. 

All employees of PERA-affiliated employers can supplement their retirement savings with voluntary contributions to the PERAPlus 401(k), and some employees also have access to the PERAPlus 457 Plans. While all members have access to the tax-deferred contribution option, some employers have adopted the Roth option for their employees, allowing for tax-free growth and distributions. 

When planning for your retirement, you may have the option to purchase service credit so that you may be able to retire earlier and/or with a larger benefit. Your eligibility and cost to purchase service credit is dependent on several factors.

Members in the DB Plan are automatically eligible for additional benefits that offer extra financial protection at no additional cost (DC Plan members are not eligible). These benefits include survivor benefits and disability coverage. Since most members do not participate in Social Security, these disability and survivor benefits provide important protection.  

Any member unable to work due to a medical condition, and who has at least five years of earned service credit, may apply for PERA’s disability program, which includes both short-term and disability retirement coverage. Members must apply for the PERA disability program within 90 days after terminating employment.

If a member dies before retirement with at least one year of earned service credit, the member’s qualified survivors may receive a survivor benefit. In many cases, survivors will receive an ongoing monthly benefit. 

PERA offers a voluntary, decreasing term life insurance program administered by Unum. The life insurance program provides active members guaranteed enrollment and allows them to keep the plan into retirement. New members may enroll within 90 days after first becoming a member or during the annual open enrollment period, which is April 1 through May 31. 

PERACare is PERA’s health benefits program for retirees and benefit recipients, which includes health, dental, and vision care programs. Retirees may enroll in any or all three types of coverage, and they may also enroll their eligible dependents in any of the plans in which they participate. Both Pre-Medicare (under age 65) and Medicare eligible (age 65 and over) plans are available.

PERA retirees and benefit recipients qualify for a premium subsidy (based on the member’s years of service credit) to help offset some of the cost of health insurance.

In addition to our website and Customer Service Center (800-759-7372), we offer several webinars which allow you to participate and ask questions and hear questions from other PERA members about your PERA benefit.