Refunds & Rollovers

As a member of PERA, you have options when you leave public employment. Learn how changing jobs impacts your PERA benefit options. Your refund amount consists of your member contributions plus interest, compounded annually. Employer contributions remain with PERA to fund benefits provided by the association.

Is a Refund Right for You?

Carefully consider your options. If you are vested, you may leave your contributions with PERA and draw a benefit when you retire. By taking a refund, you forfeit all future PERA benefits from your account.

Rollover

If you transfer your refund to a tax qualified plan that accepts rollovers, your refund will not be taxed at the time of the transfer. Your refund will be mailed to you but issued to your tax-qualified plan.

Lump-Sum

If you choose a lump-sum payment you are subject to federal taxes and state taxes. If you are under age 59 ½, you will also pay a 10% federal early withdrawal additional income tax, unless an exception applies.

After you terminate PERA-covered employment, you may apply for a refund. To apply, send PERA these completed items:

1. Notarized Refund Application. Only applications with original ink signatures will be accepted.
2. (Optional) W-4R federal tax form and/or W-4MNP Minnesota state tax form. If you would like to withhold a tax amount other than the default, send the additional tax forms. 

A refund is payable as a lump sum between 30 and 120 days after we receive your completed application. The length of time may vary depending on when PERA receives your remaining payroll transactions.