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Retirement Processing FAQ

Understanding the retirement process will minimize stress and help make your transition a smooth one.   Following the guidelines outlined in the Countdown to Retirement (Checklist)will ensure that you are on the right track for retirement. The checklist details actions you should take before submitting your Application for Retirement (PSRS-8) and when you should take them.   Actions on the checklist include:

After you have completed the items on the checklist, you will be prepared to complete and submit paperwork initiating your retirement.   Here are some frequently asked questions about initiating your retirement process with PSERS.

Q: Do I need to do anything in addition to notifying my employer of my plans to retire?

A: Yes.  You must submit an Application for Retirement to PSERS in order to initiate your retirement benefit.   Although n otifying your employer does not initiate the retirement process, it is a necessary step before PSERS can begin to calculate your benefits.

Q: What am I required to submit to PSERS?

A: You are required to submit a complete application which includes:

  1. Application for Retirement (required):  An application will be provided to you at your meeting when you attend PSERS Retirement Exit Counseling session.

  2. Authorization for Direct Rollover (if applicable):   If you are a Class T-C or Class T-D member of PSERS and plan to roll over the contributions and interest from your account, you will need to provide this additional form.   You will receive the Authorization for Direct Rollover (PSRS-1264) when you schedule your PSERS Retirement Exit Counseling session.   The financial institution where you plan to roll over your funds or an authorized representative of that institution must complete Part B of this form.

  3. Proof of your survivor annuitant’s date of birth (if applicable):   If you plan to select Option 2, Option 3, or a special/customized option involving a joint-survivor annuity, you must provide PSERS with valid proof of your survivor annuitant’s date of birth (such as a photocopy of his or her driver’s license, birth certificate, etc.) with your Application for Retirement .

 

Q: What is my employer required to submit to PSERS?

A: Your employer is required to submit the following information to PSERS before your retirement can be completely processed:

  1. Termination contract record which identifies your last day of paid employment

  2. Final monthly work report which includes your final salary, contributions, and hours/days worked in your last year of employment

Q: When will I begin receiving my monthly retirement benefit?

A: Your benefit payments will begin approximately four to six weeks after PSERS has received all of the following:

·          Your properly completed Application for Retirement and required supporting documents
·         
Your termination contract record
·         
Your final work report

 

Work reports are due the 20th of each month and contain information for the previous month.  PSERS would not expect to receive your final work report until the 20th of the month after you receive your last paycheck from your employer.  Yourbenefit payments will begin approximately four to six weeks from PSERS’ receipt of the final work report.

 

Example 1 :

Retirement date: June

You receive final paycheck from employer: June

Final work report due to PSERS: July 20

PSERS benefit payments begin: Late August or early September  
(four to six weeks from receipt of final work report)

 

Example 2 :

Retirement date: June

You receive final paycheck from employer: August

Final work report due to PSERS: Sept. 20

PSERS benefit payments begin: Late October or early November
(four to six weeks from receipt of final work report)

 

NOTE:   If you choose to delay your benefit effective date (terminating employment but waiting a period of time to begin to receive retirement benefits), your benefit will be paid within four to six weeks of your effective delayed retirement date.

 

Q: What if my employer does not submit the final work report on schedule?

A: If PSERS does not receive your last salary, contributions, and service from your employer by the expected date, you may be paid an initial estimated benefit.  Your benefit will be recalculated to include your complete information within the next 12 months.

 

Q: What are other less common factors that could affect the processing of my benefit?

A: The timelines above do not apply to exception situations, such as if your account involves a divorce , multiple service membership (state service + school service), or a previous PSERS retirement .

Remember to notify your employer of your retirement and comply with any requirements your employer may have.  If your employer is not aware of your retirement, it will delay the processing of your benefit.

If you have other questions as you prepare for retirement, contact your PSERS regional office .