Public Employee Retirement System 3 Comparison
Compare the State Board Retirement Plan and the Public Employees Retirement System 3
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Definitions: Vesting in SBRP: When a participant gains ownership in the employer contributions. Vesting in PERS 3: When a participant becomes eligible for the employer-paid defined benefit. return to footnote referrer. Portability: The accrued benefit that can be transferred or accessed when a participant leaves employment. return to footnote referrer. |
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| Topic | SBRP | PERS 3 Employer Contributions | PERS 3 Employee Contributions |
|---|---|---|---|
| IRS Qualifications |
401(a) Defined Contribution Plan | 401(a) Defined Benefit Plan | 401(a) Defined Contribution Plan |
| Employee Tax Deferred Contributions |
Percent of gross salary:
You are responsible for your investment selection. |
n/a | You elect your contribution rate from a list of six options. See page 5 of the PERS 3 Handbook. You are responsible for your investment selection. |
| SBRP Employer Contributions | 100% match percent of gross salary:
You are responsible for your investment selection. |
Employer contributions fund the defined benefit only and are unavailable to participants who leave the plan prior to retiring. Amount varies over time, dependent upon Legislative decision making. |
n/a |
| Vesting | Vesting is immediate. 100 percent of employee and employer contributions and any investment returns are yours after separation. | After 10 service credit years, you have a vested right to the employer-paid defined benefit retirement when you meet the Plan’s age requirement, even if you leave employment. Or, after 5 years of service credit, depending on your age and when your service credit was earned. Refer to the PERS 3 Handbook or contact the DRS for more information. | Vesting is immediate. 100% of employee contributions and any investment returns are yours upon separation. |
| Portability | 100 percent portable. Both employee and employer contributions, and any investment returns can be rolled over upon separation of all employment with participating employers. | Not portable. Employer contributions made on behalf of the employee remain with the Plan. | 100 percent portable. May be rolled over to another qualified plan or IRA. |
| Retirement Benefits | The amount of your retirement income will be based on the balance of your SBRP account when you retire. There are a wide variety of income options available at separation or retirement. These include lifetime annuity for you and/or an annuity partner, cash withdrawal, roll over to IRA, interest only withdrawals, minimum distribution required by the IRS and others. | Formula-driven, lifetime monthly pension, if funds are vested and participant meets retirement eligibility rules. The formula is 1% x average final compensation x years of service. Other Plan information is available in the PERS 3 Handbook. | The amount of your benefit will depend on the amount you contribute and the performance of your investments. A variety of distribution options are available. Contact DRS for more information. |
Disclaimer: If there are any discrepancies between this information and the provisions of the SBRP Plan Document or PERS regulations, the Plan Document or regulations will prevail.
