- 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?
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?
Yes. 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.
There are no minimum vesting requirements for individuals in Group 4. However, the law requires that a member of Group 4 be at least 55 years old in order to retire pursuant to Section 5 of Chapter 32, and that he or she perform the duties of a Group 4 member for at least 12 months prior to retirement.
|Date published:||July 1, 2015|