Your PERA benefit is from a defined benefit plan, which means your monthly pension is determined by a formula and is payable for life.

Eligibility

The minimum age to draw a benefit is 55 for the Coordinated members, and 50 for Correctional and Police & Fire members; however, drawing early will reduce your benefit. The full retirement age is 66 (65 if you were hired prior to July 1, 1989) for Coordinated, or 55 for both Correctional and Police & Fire.

30 Day Separation

PERA law requires a complete separation from all Minnesota public service for 30 days. You cannot have a written or verbal agreement to return to work for any Minnesota public employer. You also may not work as an independent contractor for your current employer for 30 days. Public employment includes paid or volunteer services to any Minnesota government employer (e.g., schools, cities, counties, townships, universities or state agencies).

Benefit Effective Date

Your benefit effective date is the first day of the month following your termination of public employment if you work continuously up to retirement. If we have all documents before you terminate employment, we will issue your first benefit approximately three weeks after your benefit effective date. If your termination date was in the past, you may make your benefit retroactive up to 5 months in the past, up to the first of the month following your termination date.

You will receive your benefit via direct deposit on the first business day of each month.

Tax Withholding/1099-R

Your PERA benefits are taxable. You can elect tax withholding with your application. You may also change them at any time on myPERA or by sending PERA updated tax forms.

Each year, PERA will mail you Form 1099-R by the end of January to report your income. You can also find it on myPERA by January 2nd each year.

Annual Increases

Your benefit is not a fixed amount. As a retiree, you’ll receive annual benefit increases each January. If you qualify for an increase, it will be included on your January deposit. You may view your benefit increase in late December on myPERA. The very first increase is anywhere from 7–37 months after retirement, depending on your benefit begin date and the PERA pension plan.

Things to think about in the year before you retire:

• Talk to your employer’s HR department about your insurance options for retirement.

• If you plan to collect Social Security benefits, visit ssa.gov three months before you turn 62. Compare the advantages and disadvantages of starting to collect your Social Security benefits at age 62, full retirement age, and age 70.

• If you have not applied for Social Security three months before turning age 65, contact the administration to discuss applying for Medicare health insurance.

• If you plan to return to PERA-covered employment after your benefits begin, check on earnings limits and termination requirements.

• Use the retirement calculator in myPERA, or contact Member Services for an updated benefit estimate.

• Use the Benefits Options Worksheet to determine which option – Single Life or Survivor – is right for you.

• What other tax-deferred savings plans do you have and what are their withdrawal options?

Phased Retirement Option (PRO): PRO is a tool that allows you to transition into full retirement by working reduced hours while remaining in your same position. If you’re an active member of the General Plan, and at least 62, your employer may have this option available to you. See the Phased Retirement Option fact sheet for more information

What should I do?

• Attend a Ready to Retire session or contact our office and speak with a Benefits Counselor.
• Get an up-to-date retirement estimate, available from myPERA.
• Notify your employer of your plans.
• Review your other tax-deferred savings plan and their withdrawal options.

Decisions to consider when preparing for retirement

1. When will you retire?
What date will you retire? What is your last day as a public employee?

2. Do you want your PERA benefit to start now or later?
Ending your PERA public service does not mean you have to start drawing your benefit. You may wait until a later date, but should not wait any later than your normal retirement age. (assuming you are not active with another public pension in Minnesota.)

3. Which benefit option will you choose?

Single Life Option: This is the highest monthly payment based on your retirement date; you are the only one to receive monthly benefits. When you die (and if all of your contributions are used up), your PERA account is closed, and no further payments will be made.

Survivor Option: Choosing a survivor on your retirement application is optional. A survivor option lowers your own monthly benefit, but when you die, that survivor receives a lifetime monthly benefit.

Important: You cannot change your retirement option or named survivor when PERA issues your first benefit payment. This is a permanent decision.

Bounce Back: If the survivor you named on your benefit dies before you, your monthly amount increases—or ‘bounces back’—to the Single Life amount. You cannot name another survivor.

4. How much tax withholding do you need?
Your benefit payment is subject to federal and state income taxes. You decide how you want us to withhold taxes for you.

5. Where do you want your monthly deposit to go? Checking or Savings?
Your benefit will be direct deposited to either your checking or savings account. The account can be changed at any time.

We need four things to start paying your lifetime monthly benefit

60 to 90 days before you retire, complete and submit:

1. Completed and Notarized Application for PERA Retirement Benefits.

PERA will not accept your retirement application more than six months prior to the start of your benefits. If you are married, both you and your spouse must sign in the presence of a notary public, no matter which benefit option you choose. Only the original application will be processed. We cannot accept applications by fax or email.

2. Completed Verification of Termination

Your employer signs this form confirming your date of separation and confirming you have no written or verbal agreement to return to work. This can be uploaded to myPERA.

3. Proof of your date of birth and any name changes.

Photocopy of passport, REAL ID, enhanced driver’s license or birth certificate and marriage certificate(s). A regular driver’s license is not acceptable. If you choose a survivor option, we will need this same information for that individual. This can be uploaded to myPERA.

4. Federal W-4P and Minnesota W-4MNP Tax Forms.

Retirement benefits are subject to federal taxes and state taxes (based on your residency). We can withhold state taxes for MN residents; if you are a non-MN resident, contact your state for tax withholding requirements.

Starting January 1, 2024: The Minnesota state tax withholding default will change from Single, 0 exemptions to 6.25%. You may complete a W-4MNP to withhold a tax amount other than the new default.

PERA can withhold the default tax amount OR you can complete the Federal W-4P and/or Minnesota W-4MNP tax form(s) to withhold a different amount. If tax selections are incomplete or no tax selections are provided, we will automatically withhold the default selections for Federal and State (MN residents only).

Before Your Mail Your Application:

Verify that your application is complete, with all parts completed, with your benefit choice, notarized signature (and your spouse’s, if married), and requested tax withholding. There can be no cross-outs, white-outs, or other alterations on the benefit selection page (Parts C and D).

After you apply:

• You will receive a letter from PERA confirming your valid application, or requesting additional information if needed.

• Your first payment will be direct deposited approximately three weeks after your benefit effective date. Each following payment will be on the first banking day of the month.