HR/Benefits/Retirement Planning Guide/Public Employees' Retirement System
Public Employees' Retirement System
The Public Employees' Retirement System of Nevada (PERS) is a defined benefit pension plan provided to classified employees and any Faculty member who had an active account with PERS at the time they were hired by the Nevada System of Higher Education. Eligible employees are enrolled in this program upon hire. If you are a contributing member of PERS after June 30, 1989, you earn the right to receive a retirement allowance after five years of service.
| Eligibility for Monthly | |
| Unreduced Retirement Benefits | |
| Years of Service | Age |
| 5 | 65 |
| 10 | 60 |
| 30 | Any Age |
Benefit Calculation: The monthly benefit you receive will be based on three factors:
- Service Credit – years, months and days on which contributions were paid
- Average Compensation – average highest 36 consecutive months of employment.
- Selection of Retirement Option and Age of Member and Beneficiary at the Time of Retirement.
Benefit Formula: The formula used for calculating your retirement benefit is as follows:
Service Credit x 2.5% x Average Monthly
Compensation = Unmodified Allowance
Example: 25 Years x 2.5% = 62.5%
62.5% x $2,800 = $1,750
* For service credit earned after July 1, 2001, a 2.67% multiplier will be used.
Retirement Options
Benefits are paid to you for life and, after your death, to the one person names as beneficiary on the retirement application. It is not mandatory to name a beneficiary. Prospective retirees may elect one of seven retirement options.
Option 1 – The Unmodified Allowance pays you the full monthly allowance you have earned but provides no income protection for your beneficiary after your death.
Option 2 – provides an actuarially reduced allowance for your lifetime. After your death, the same allowance continues for the lifetime of your beneficiary.
Option 3 – provides an actuarially reduced allowance for your lifetime. After your death, 50% of the allowance continues for the lifetime of your beneficiary.
Options 4 and 5 - are calculated the same as 2 and 3 but are not payable to a beneficiary before age 60. In options 6 and 7, a retiree may designate the beneficiary amount.
The reduction from the unmodified allowance is determined by an actuarial percentage based on the ages of the member and beneficiary at the time of retirement.
After retirement, the named beneficiary cannot be changed; however, you may under certain conditions choose to revert to the Unmodified Option. If your beneficiary predeceases you, the law provides that your benefit will revert to the Unmodified Option.
Early Retirement Reduction
In the event you earn the years of service necessary to receive a retirement benefit but have not reached the age for an unreduced benefit, you may retire at any age with your benefit reduced by four percent for each full year that you retire early.
How to Apply for Retirement under the PERS
Between three and six months before your retirement, request an estimate of retirement allowance and an application for retirement. The request should include:
- Your anticipated retirement date
- Your name and Social Security number
- Your beneficiary’s name, birth date and Social Security number
It is also wise to consult a PERS counselor prior to your retirement.
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