What Is Public Employees' Retirement System?
The Public Employee Retirement System is for government
employees except for teachers and students. This is a mandatory
membership and all members should fill out a form of application
at the beginning of their employment. It is a benefit plan that
gives benefits to employees once they retire. This will be based
on the number of years they rendered service and on their
average salary. The Public Employees Retirement system also
covers survivor and disability protection. The system also
allows those with 30 years of service to file for an early
retirement. They also provide death benefits and beneficiary
benefits. Every Public Employee Retirement System of every state
is committed to ensuring the retirement benefits of every
employee.
Contributions are deducted from the employee's payrolls. The
amount may vary for every employee depending on their retire
plan and coverage. Currently, the contribution rate is 8.5
percent of the salary of an employee and will increase up to
9.5% in the year 2007. Employer contributions however, range
from 13 to 17%. The benefits that you will get once you retire
are dependent on your contribution and position as well as your
employer's contribution. The benefits are fixed depending on the
legislation set by every state. That is why it is always
recommended for members to know their benefits and coverage so
that they can get the most of their contributions once they
retire. Although the Public Employee Retirement System is
compulsory for all employees, there are still criteria that you
have to meet to become a member. Here are the criteria that you
need to meet to become a member for most states' Public Employee
Retirement Systems: 1. The applicant should be a regular
employee and the annual salary of the applicant should be $1,500
or higher.
2. The applicant's position should be under the coverage of the
Social Security System. Generally, these are some of the most
common grounds for ineligibility: 1. If the person does not meet
the minimum annual salary required which is $1,500.
2. If the applicant is not covered by the Social Security.
3. If you are a temporary employee
4. If you are currently employed by the Job Training Partnership
Act and being paid by their federal funds.
5. Students who are employed by their schools and universities
where they attend regular classes sometimes may not qualify for
the PERS.
6. Inmates in correctional institutions are not eligible.
7. Mental health and retardation patients do not qualify for the
Public Employee Retirement System.