The Effect of Vesting and Interest on Your Account Balance
Carefully consider whether it is to your advantage to withdraw your account funds while they may still earn interest for you if left with PEERS. Withdrawal could mean you forfeit interest.
If you leave PEERS-covered employment before you are vested (before you have five years of eligible credit) and you leave your funds with PEERS, you retain your membership. Your funds continue to draw interest, provided you return to PEERS-covered service any time in the next five consecutive school years and earn at least one-tenth of a year of credit.
Your membership automatically terminates when you are not vested and are out of PEERS-covered employment for five consecutive school years. When your membership ends, the balance in your account is refunded to you upon application.
Carefully consider whether it is to your advantage to withdraw your account funds if you are vested. Withdrawal after vesting means you forfeit a monthly lifetime retirement benefit.
If you are vested with PEERS (have five or more years of eligible credit) you may end your PEERS-covered employment at any age and hold your membership by leaving your funds with PEERS, and later claim a monthly lifetime retirement benefit when you meet minimum eligibility requirements.
