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If you decide to leave your money in IPERS, it will continue to earn interest. If you want to leave your money in IPERS, you do not need to do anything. Your money will automatically remain in IPERS. If you later decide to roll over your money to another retirement plan or take a refund, you can apply anytime.
Vesting is an important milestone on the road to retirement. To become a vested member, you need to work for IPERS-covered employment for: Seven years or have wages reported during the month you turn age 65 or older as a Regular member.
IPERS members are eligible to retire and receive monthly benefits if they are: A vested member. 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.
The Rule of 88 is when a member is age 55 or older, and the sum of the member's age at the last birthday and years of service equals or exceeds 88. The Rule of 62/20 is when a member is age 62 or older and has at least 20 years of service.
IPERS benefits are partially exempt from Iowa income tax ($6,000 or $12,000 a year depending on filing status). IPERS will not withhold Iowa income tax for retirees who are not Iowa residents.
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According to the SSA's 2021 Annual Statistical Supplement, the monthly benefit amount for retired workers claiming benefits at age 62 earning the average wage was $1,480 per month for the worker alone.
If you decide to leave your money in IPERS, it will continue to earn interest. If you want to leave your money in IPERS, you do not need to do anything. Your money will automatically remain in IPERS. If you later decide to roll over your money to another retirement plan or take a refund, you can apply anytime.
If you die before receiving benefits for 10 years, your designated beneficiary will be eligible for a benefit. If your beneficiary is an individual, the beneficiary will receive a monthly benefit for 120 months minus the number of payments the member received.
Vested members are old enough or have enough years of service to receive monthly benefits upon retirement. Vesting should not be confused with normal retirement age rules, e.g., Rule of 88 and Rule of 62/20, which determine when an early retirement benefit reduction no longer applies.
IPERS covers most Iowa public employees. With more than 360,000 members and approximately 2,000 employers, IPERS is the largest public retirement system in Iowa.

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