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.