What Does It Mean to be Vested, and Why Does It Matter?

new teacher standing in front of classroom

If you are new to PSRS/PEERS, you need to know that five years unlocks a big reward: vesting. 

Being vested means you’ve earned the right to receive a future retirement benefit. You become vested with PSRS/PEERS after just five years of eligible service to a PSRS/PEERS-covered employer. Those five years can include certain types of leave, reinstated service, and eligible service you’ve purchased from qualified sources.

Why does this matter for you?

Even before you are vested, your contributions to PSRS/PEERS and the interest they earn are yours to keep — even if you move on from a PSRS/PEERS-covered job. Once you are vested, your membership will continue to earn interest until you reach retirement eligibility. At retirement, you will have the option to choose a plan that provides continued benefits for your loved ones too.

What if you leave before retirement?

If you are vested and decide to leave PSRS/PEERS-covered employment, you have two options:

  1. Keep your funds in your membership, and when you reach retirement eligibility, claim your lifetime monthly retirement benefit.
  2. Request a refund, ending your membership and giving up your future benefit. 

Although both options are available, they are far from equal, and you should talk with one of our benefit experts before choosing.