Nearing Retirement | Iowa Public Employees’ Retirement System (2024)

Retirement is three to five years away, and you’re ready to prepare for life’s next chapter. Now is the time to take advantage of IPERS’ retirement planning courses and meet with your financial planner to discuss your personal retirement savings. IPERS can’t tell you the best time for your retirement, but we offer several resources to help you make the right decision for your personal situation.

When to Apply for Retirement

IPERS members must complete an application to ensure that all retirement eligibility requirements are met. We encourage you to file your completed application at least 60 days before the month you want to begin receiving benefits.

Youcannot receive benefits until IPERS has received and approved your application. It is your responsibility to correctly file your application in a timely manner. Incomplete applications will be returned to you and could mean the delay of your benefits.

Regular members who meet the following requirements can collect a retirement benefit.

• A vested IPERS member
• AND are at least age 55
• AND the retirement benefit is at least $50 monthly (Retirement benefits that less than $50 per month are paid in a one-time lump sum.)

Normal Retirement Age

To avoid an early retirement reduction, Regular members must meet a normal retirement age. IPERS often refers to normal retirement age as “rules.” Normal retirement age is one of the following, whichever comes first:

• When your age plus years worked in IPERS-covered employment equals or exceeds 88 (Rule of 88)
• Age 62 with 20 or more years of IPERS-covered employment (Rule of 62/20)
• Age 65

*Sheriff/Deputy Sheriffmembers reach normal retirement age at age 50 if they have at least 22 years of service and are retiring from a Sheriff or Deputy Sheriff position. The Rule of 88 and Rule of 62/20 do not apply to this membership group.

Only vested members may receive a monthly retirement benefit. At retirement, non-vested members will receive a lump-sum payment of their contributions to IPERS plus interest. To be vested, you must meet one of the following:

• Have worked at least four years in IPERS-covered employment before July 1, 2012.
• Have worked in IPERS-covered employment with wages reported in the year youturnedage 55 and before July 1, 2012.
• Have worked at least seven years in IPERS-covered employment.
• Work in IPERS-covered employment with wages reported in the month you turn age 65.

Service = Time worked in IPERS-covered employment

Purchasing service increases the multiplier used to calculate your retirement benefit amount. Contact IPERS and request a cost estimate anytime during your career to help you plan for a future service purchase. After you submit your retirement application, IPERS will provide an official service purchase cost quote so you can decide whether to purchase service. Make sure to allow several months to complete this process. You may only purchase service at the time of retirement.

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No. If you are vested, you may start collecting a retirement benefit at any age if you are receiving Social Security Disability, or as early as age 55 if you are no longer employed with an IPERS-covered employer.

However, if you are younger than age 65 and do not meet the Rule of 88 or the Rule of 62/20, and you are not retiring because of a disability, your monthly benefit will be reduced. Sheriff/Deputy Sheriffgroup members may qualify to retire before age 55 if certain conditions are met.

To avoid an early retirement reduction, Regular members must meet a normal retirement age. IPERS often refers to normal retirement age as “rules.” Normal retirement age is one of the following, whichever comes first:

• When your age plus years worked in IPERS-covered employment equals or exceeds 88 (Rule of 88)
• Age 62 with 20 or more years of IPERS-covered employment (Rule of 62/20)
• Age 65

For more information, visit the Nearing Retirement page.

IPERS members are eligible to retire and receive monthly benefits if they are:

• A vestedmember.
• At least age 55 (age 50 if you are a sheriff or deputy sheriff with 22 years of qualified service).
• Eligible for a monthly benefit of at least $50.

In addition, to remain eligible for benefits, you must:

• Have a bona fide retirement.
• Live into the month you receive your first benefit (or your benefit application will be canceled).

IPERS members who retire and receive benefits before age 70 must have a bona fide retirement before they may return to IPERS-covered employment.
A bona fide retirement means:

• You have submitted a retirement application and IPERS has approved it.
• You have left employment with all IPERS-covered employers, including non-covered positions with covered employers.
• You are receiving retirement benefits.
• You have followed the time restrictions for providing services for an IPERS-covered employer.

Visit the Returning to Work page or review the bona fide retirement flyer for additional information.

IPERS members must complete a retirement application to ensure that you meet all retirement eligibility requirements. You should file your completed application at least 60 days before the month you want to begin receiving retirement benefits.

Before choosing a retirement date, contact IPERS and provide:

• Your full name.
• Address.
• Telephone number.
• Member ID number.
• Birthdate.
• The birthdate of your beneficiary.
• Possible retirement date(s).

After IPERS receives and approves your application, we will send you a benefit estimate. You cannot receive retirement benefits until IPERS has received and approved your application. It is your responsibility to correctly file your application in a timely manner. Incomplete applications will be returned to you and could mean the delay of your benefits.