Your Questions Answered
As an inactive member, you still have PERA retirement benefits and decisions to consider. An inactive member is someone who is not currently working for a PERA-covered employer, but who left their account(s) at PERA. The following Q&A covers some commonly asked questions and highlights resources to help you stay connected to your PERA account.
Why am I getting this newsletter?
You are receiving this newsletter because you are an inactive member, someone who left PERA-covered employment but still has an account balance with PERA. This newsletter is sent to inactive members once a year to inform them of their PERA benefits, provide information about their PERA account options, and answer frequently asked questions. You can learn more about being an inactive member on the “Inactive Members” page on copera.org.
What is a PERA benefit?
If you have a PERA Defined Benefit (DB) Plan account, that means you worked for a PERA-covered employer and earned service toward a lifetime monthly retirement benefit, called a pension. During the time you worked for a PERA-covered employer, you contributed a percentage of your salary to PERA, which will become your future benefit. When you reach retirement eligibility, you can apply to receive a monthly benefit.
Where can I find my PERA account?
You can log in to or set up your PERA account by navigating to the “Member Login/Registration” page on copera.org. In your secure account, you can review the tax-deferred and tax-paid amounts in your DB Plan account(s).
When can I retire?
The date you’re eligible to retire depends on, among other things, how long you worked for a PERA employer. In general, the more service you have, the earlier you can retire. Regardless of your work history, you are eligible for a monthly retirement benefit at age 65. You may not be eligible for an ongoing retirement benefit if you were a member of the Denver Public Schools (DPS) benefit structure and have fewer than five years of PERA service credit.
I’m keeping my account at PERA because I may go back to PERA-covered employment someday. What happens when I do?
If you return to PERA employment, you will make contributions to your account and earn service credit. You will be subject to benefit provisions, like retirement eligibility, based on your previous hire date. In the meantime, your account is earning interest, currently set at 3%.
What if I refund my account but then go back to work covered by PERA?
If you take a refund and later return to work for a covered employer, different retirement rules may apply. You may also need to work longer before you can retire. While you can purchase the service you earned during your previous employment period, purchasing service credit will not:
- Change your membership start date.
- Be used in determining your Highest Average Salary (HAS), which could affect the amount of your monthly retirement benefit.
- Count toward eligibility for the PERA disability program.
How long can I leave my DB account with PERA?
You must take a distribution from your PERA DB account when you reach Required Minimum Distribution (RMD) age. RMD age is set for you by the Internal Revenue Service (IRS) and depends on when you were born. Your first RMD is due by April 1 of the year after you reach the IRS-required age listed below. All future distributions must be taken each year by December 1.
| If you were born before July 1, 1949 | You must take your first distribution by age 70½ |
| If you were born on or after July 1, 1949, but before January 1, 1951 | You must take your first distribution by age 72 |
| If you were born on or after January 1, 1951, but before January 1, 1960 | You must take your first distribution by age 73 |
| If you were born on or after January 1, 1960 | You must take your first distribution by age 75 |
A distribution can be a refund or rollover of the entire balance or initiation of your benefit payments. You can find more information about this requirement at irs.gov.
Are there tax consequences if I refund my account?
Unless you roll your account over to another tax-deferred plan, you will pay state and federal taxes on your refund. Additionally, if you are under age 59½, you may pay a 10% penalty to the IRS for early distribution for refunding. If you are considering refunding your PERA account, refer to the Tax Considerations for Refunds and Rollovers fact sheet.
Could my Social Security benefit be impacted by my PERA account?
For most PERA members, you do not contribute to Social Security while contributing to PERA. If you’ve earned a Social Security benefit from other employment, you’ll receive benefit payments from both PERA and Social Security in retirement. PERA and Social Security are two separate benefits. If you have questions about Social Security or the Social Security Fairness Act, contact the Social Security Administration.
Where can I find more inactive member information?
You can find more inactive member information on the “Inactive Members” page on copera.org. You can learn more about options with your PERA account, applying for a retirement benefit, Required Minimum Distributions (RMDs), and returning to work for a PERA employer. You can also access downloadable resources.