As a member of SERS, you have been funding your own retirement through employee contributions, employer contributions, and investment returns on those contributions each pay period.
The right time to retire looks different for everyone. One thing is true for all members, though. The earlier you begin planning, the better prepared you will be when it is time to retire.
If you are just starting to think about retirement, read Ten Steps Toward a Secure Retirement. This handout gives some insight into retirement options you will want to learn more about as you get closer to retirement.
Retirement with SERS is a matter of eligibility. To apply for a monthly, lifetime pension, you must meet one of the required age and service credit combinations.
Eligibility for SERS retirement is determined by:
Your total service credit
Your chosen retirement date
Eligibility for SERS retirement is not the same as eligibility for Social Security. Call Social Security at 1-800-772-1213 for additional information.
SERS offers two types of service retirement:
Unreduced service retirement provides the maximum pension amount based on your service credit and final average salary, which is the average of your three highest years of earnings.
Early service retirement allows you to retire before becoming eligible for unreduced service retirement. Benefits will be reduced to cover the cost of providing a pension over a longer period of time.
Some members leave SERS-covered employment before reaching retirement eligibility and wait to apply until a later age, often when they apply for Social Security benefits. While this is allowed, it’s important to know that health care coverage cannot be applied retroactively.
Your first pension payment will include all payments due from the date you first became eligible. However, because health care coverage does not work the same way, it’s generally best to apply for retirement as soon as you are eligible.
When filing for a retroactive retirement, we suggest you contact Social Security to determine any possible adjustments.
If you work in more than one SERS-covered position, you may:
Retire from your highest-paying position
Continue working in the lower-paying position
For example, if you work as both a custodian and a bus driver with separate salaries, both salaries will be used to calculate your pension. You may continue working in the lower-paying role after retirement. You must have distinct salaries or individual contracts, or work for more than one SERS employer to do this.
If you also work in a position covered by OPERS or STRS, similar rules may apply. In these cases, you may become a reemployed retiree and your original pension will not be affected by continuing to work in this lower-paying position. See the Member Benefits Guide for more details.
Your SERS pension is based on three key factors:
Age is your actual age on your retirement date
Service credit includes all eligible service you’ve earned or purchased
However, delaying also means one or more pension payments lost.
In some cases, delaying retirement by a short period, such as until after a birthday, may increase your pension. Salary is an average of your highest three years of earnings. Comparing estimates can help you decide what makes the most sense for you.
All service credit must be purchased before your retirement date. Our Member Services staff can show you the pension amount before and after purchase of credit. In some situations, the cost of purchasing service credit can be recovered within a few years through a higher monthly pension.
For details, visit the Service Credit page.
To receive an accurate pension estimate, you must choose a specific retirement date, even if it is tentative. This allows SERS to calculate your age, service credit, and final average salary correctly.
You can request an estimate by:
Estimates are intended for planning purposes and may differ slightly from your final pension amount.
*Working fewer than five days per week will reduce service credit.
Read The Top 10 Things You Should Know About Your SERS Retirement for more helpful hints.
Estimating your pension before you retire can help you make informed decisions about timing and options. Create an online account through Account Login, then select “Estimates” from the menu to get started.
We’re glad you’re a member of SERS. If you have questions about your retirement account or benefits, we are here to help.
