What’s New for PERAPlus and Purchasing Service Credit in 2027
In 2027, PERA members will have access to additional PERAPlus savings options and expanded eligibility for purchasing service credit. These changes will give members more ways to save and plan for their retirement.
More Choices for Retirement Savings
Beginning January 1, 2027, PERAPlus savings choices will include both the 401(k) and 457 Plans. Members will be able to choose a Traditional (pre-tax) or Roth (post-tax) option for both PERAPlus plans. These additional PERAPlus options are designed to give PERA members more retirement savings options.
Both plans allow you to save money for retirement and have similar annual savings limits, including catch-up contributions for participants age 50-63. The 457 Plan also allows employees within three years of retirement to save additional money. Enrollments and contribution changes for both PERAPlus 401(k) and 457 Plans will be done through your employer.
More Purchasing Service Credit Options
In 2027, PERA members will be able to purchase service credit for eligible periods of unemployment that occurred after age 21. Beginning January 1, 2027, eligible periods of unemployment can count toward the amount of “nonqualified” service credit a member can purchase.
“Nonqualified” time includes periods when a member worked for a non-PERA, non-governmental employer. In 2027, nonqualified time will also include eligible periods of unemployment. PERA members can purchase up to five years of nonqualified time.
Before making decisions about PERAPlus and purchasing service credit, visit the PERAPlus 401(k)/457 Plans and Purchasing Service Credit webpages to learn more about your options.
