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What is the definition
of vesting?
“Vesting” is the
term commonly used to signify the establishment
of the right to a retirement allowance. Vested
benefits are those benefits that do not depend
upon the member remaining in service in order
to be entitled to them.
When is a member considered
to be vested?
- Vesting Requirements
Any individual (in Group 1 or Group 2) who:
• becomes a member of a public
employee retirement system after January 1,
1978, and
• who has at least 10 years
of service, and
• whose accumulated payroll
deductions are on deposit with the retirement
system may request a retirement allowance
upon attaining age 55.
Are there any exceptions
to the ten-year creditable service requirement?
- Groups 1 and 2
Any individual (in Group 1 or Group 2) whose
membership in a public employee retirement
system began before January 1, 1978, and who
maintains an annuity savings fund account
with that retirement system, is eligible to
receive a superannuation retirement allowance
at age 55 or later, regardless of how many
years of creditable service he/she has completed.
- Elected Officials
Elected officials who have completed at least
six years of creditable service and who, before
age 55, fail to be nominated or reelected
or fail to become a candidate for nomination,
re-election or election or fail to be re-appointed
or whose office or position is abolished,
can leave their payroll deductions in their
annuity savings fund accounts and be eligible
to receive a termination retirement allowance
at age 55 or later.
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Vesting
