If I terminate employment with the state, what retirement benefits can I get?

• If you are age 60 and have at least 10 years of creditable service under the Employees’ Retirement System (ERS), you can retire with a lifetime monthly benefit.
• If you have at least 30 years of creditable service, you can retire with a lifetime monthly benefit.
• If you have at least 25 years of creditable service, you can retire with a reduced lifetime monthly benefit. The reduction is 7% for each year of service fewer than 30 years, or for each year you are under age 60, whichever is less.
• If you are under age 60 and have at least 10 years of creditable service, but not 25 years, you are eligible for a lifetime monthly benefit beginning at age 60.

To find out the amount of your monthly benefit, use the Log In button at the top of any page to access your account. Choose Generate a Benefit Estimate on your dashboard.  You can also call ERSGA and request an estimate in the mail.

What about my balance in the Peach State Reserves (PSR) 401(k) and 457 Plans?

If you have funds in Peach State Reserves (PSR) account, you will have two decisions to make:

1. What to do with your ERS retirement benefit 
2. What to do with your PSR balance.

If you are retiring directly from employment and would like to use all or part of your PSR balance to buy additional lifetime income, call ERSGA and request a quote for Air Time.

If your PSR account, including vested Employer contributions in your 401(k), is at least $1,000, you can leave your balance in PSR with the following benefits:

• Continued tax-deferred status on your investments
• Access investment advice
• Ability to manage your investments and transfer money among funds.

If you want to withdraw your balance from PSR, you must wait until 30 days after leaving employment to request your withdrawal.  You will owe tax on all funds from non-Roth accounts, and Roth accounts that have not met the five-year investment rule. 

If you are under age 59 ½, there is an early withdrawal penalty for any funds withdrawn from your 401(k).  You can access your PSR account at GaBreeze.ga.gov.  

I don’t have 10 years of ERS service.  What can I get?

You can get a refund of your ERS contributions and interest. You may also leave the money with ERS if you plan to return to state service and again become a contributing member of ERS.  Your account will not accrue any further interest while you are not a contributing member.

Should I get a refund if I don’t have enough creditable service to vest?

If you can find another job covered by ERS within 4 years of termination and you have left your money in the system, you retain the membership rights you had at termination and will “pick up where you left off.” If you return after 4 years, your membership will be established under the provisions of law in effect at your rehire date. NOTE: If you have at least 10 years of service and have not received a refund and you find a job covered by the Teachers Retirement System (TRS), you can choose to remain a member of ERS. But you must make this decision within 60 days of your TRS hire date.

Should I get a refund from ERS?

Anyone who has terminated employment can get a refund from ERS.  Taking a refund, however, has several consequences:

• You give up any right to a lifetime monthly benefit. 
• You end your plan membership.  If you are later rehired, you will become a member again under the provisions of law in effect at your date of rehire.
• If your ERS membership date is currently before 2009, your ERS Group Term Life Insurance (GTLI) coverage will end when you take a refund.

If you do not take a refund and begin another position covered by ERS within 4 years of termination, you retain the membership rights you had at termination and will pick up where you left off.

What if I get a refund and return to state service at a later date?

If you take a refund of your ERS contributions and interest, upon rehire you will be covered under the retirement plan offered to new hires at the time of rehire.  You may buy back your refunded service by:

1. Completing 2 additional years of ERS membership, and
2. Repaying a lump sum equal to the withdrawn amount plus 4.25% interest compounded annually from the date of refund to the date of repayment.

Upon receipt of payment, service will be credited to your current, active ERS membership.   

What if I find employment covered by the Teachers Retirement System (TRS)?

If you have at least 10 years of ERS service and have not received a refund, you can choose to remain a member of ERS – but you must make this decision within 60 days of your TRS hire date.

If you become a TRS member, you can transfer your ERS service to TRS.  If you have taken a refund of your ERS service, you might be able to buy back your ERS service in TRS by repaying your refund to TRS.  If you become a TRS member, you should contact TRS for further information.

If I get a refund, will I have to pay taxes?

You will be responsible for paying federal taxes, and any penalties (if applicable), on the untaxed money in your account.  Generally, your contributions to ERS have already been taxed and only the interest earned on your contributions is taxable. 

If your taxable amount is at least $200, you can roll it over to a qualified retirement plan or  individual retirement account.  Monies rolled over are not taxable until they are withdrawn.  If your non-taxable amount is at least $200, you can roll it over to a Roth IRA.  Consult a tax professional or the IRS for further information.

How can I apply for a refund of my contributions?

To request a refund, use the Log In button at the top of any page to access your account, and choose Request a Refund.

I don’t have 25 years and I’m not age 60. What can I get?

If you have at least 10 years of creditable service but you don’t have at least 25 years, you can leave your money with the retirement system (not get a refund) and remain vested. At age 60 you can apply for retirement and begin drawing a monthly retirement benefit. It is your responsibility to notify ERS 30 – 90 days prior to age 60 in order to make your application for retirement. You can also get a refund of your contributions and interest, but if you choose that option, you forfeit any rights to further benefits from ERS, including your vested monthly retirement benefit.

NOTE: If you have at least 10 years of service and have not received a refund and you find a job covered by the Teachers Retirement System (TRS), you can choose to remain a member of ERS. But you must make this decision within 60 days of your TRS hire date.

What about my life insurance? Can I keep that?

You may have two kinds of life insurance: (1) through Flexible Benefits (that you choose each year during Open Enrollment) and (2) Group Term Life Insurance (GTLI) through the Employees’ Retirement System.* Contact the GaBreeze for questions about your insurance through Flexible Benefits. For more information refer to their website: www.gabreeze.ga.gov.

If you retire with a monthly benefit, you will be able to keep your GTLI through ERS. Before retirement and while under age 60, your GTLI coverage is equal to 18 times your monthly salary. At age 60, the amount of your GTLI coverage begins reducing at a rate of ½% of the age 60 coverage every month. At age 65 the reduction stops and you have 70% of the GTLI amount you had at age 60. At retirement, the amount of coverage automatically reduces to 70% of the age 60 amount. No further premiums are payable upon retirement.

*GTLI is provided to members of the ERS “Old” and “New” plans. It is not offered to members of the Georgia State Employees’ Pension and Savings Plan (GSEPS) – generally those hired on or after January 1, 2009.

What happens to my life insurance?

You may have two kinds of life insurance:

Group Term Life Insurance (GTLI) through ERS (pre-2009 members only)

If your ERS membership date is before 2009 and you start your ERS retirement benefit immediately upon termination of state employment, you will keep your GTLI coverage.  At retirement, the amount of coverage reduces to 70% of your coverage prior to retirement (or at age 60 if earlier) and no further premiums are payable. 

If you are not yet eligible for ERS retirement but you have at least 18 years of ERS service, you can continue your GTLI coverage.  Premiums of 1% of your final monthly salary accumulate each month until you retire.

Life Insurance through Flexible Benefits (that you choose each year during Open Enrollment)

For more information about your Flexible Benefits, contact GaBreeze.

I don’t have enough service to retire. Can I still keep my GTLI?

It depends on how many years of creditable service you have. If you have at least 18 years of creditable service (excluding forfeited leave) and you remain vested for retirement (i.e. you do not get a refund) you can keep your GTLI coverage. However, you must write to the ERS and request that your coverage continue. The premium will cost 1% of your final salary for each month until retirement, death or, if you decide to get a refund later, at the time of refund, at which time these premiums will be deducted from the benefit payable. If you have enough service to vest but don’t have 18 years of creditable service, or if you don’t have enough service to vest, or if you decide to get a refund, your GTLI coverage ends upon termination of employment.

If you keep your GTLI coverage, the amount of coverage is the same as set out in the question above. Reductions to this amount begin at age 60, or upon earlier retirement. No further premiums are payable upon retirement.

Can I buy additional service?

If you are retiring directly from active employment, you can buy up to 3 years of Air Time service at retirement.  You pay the full cost of the increase in your monthly pension benefit, so this is much more expensive than just your employee contributions. 

Air Time cannot be counted toward the 10 years of service needed to become vested in an ERS benefit, but it can be used to help you reach 25 or 30 years of service.

I’m eligible to purchase prior refunded service or military service.  Can I buy that later?

You may only purchase service while you are an active, contributing member under ERS – not after terminating employment.

Where can I get a retirement application?

You can download a copy at www.ers.ga.gov under Forms and Publications.

Can I keep my Health Insurance and Flexible Benefits?

If you are retiring directly from active employment, you can keep your health and dental insurance.  All questions concerning health insurance should be directed to the State Health Benefits Plan (SHBP) at shbp.georgia.gov.  All questions concerning Flexible Benefits should be directed to the Department of Community Health or call GaBreeze at 1.877.342.7339.

If my employment is terminated, when will I get my check for unused annual leave?

Questions about payments for unused annual leave should be directed to your HR or payroll office.  If you’re interested in sheltering your annual leave payment from income taxes, you can contribute most of the payment into the Peach State Reserves 457 plan (if eligible). 

Annual Leave Agreement 

What happens to my Peach State Reserves 457 and/or 401(k) plan?

There is no requirement to take your money out of the plan, unless your account balance is $1,000 or less.

With Peach State Reserves, you continue to have access to your account, with the following benefits:

• Continued tax-deferred status on your investments

• Access investment advice

• Manage your investments & transfer money among funds

Visit the plan website at www.gabreeze.ga.gov or call 1-877-342-7339. Withdrawals/rollovers can be made directly on the website; however, they cannot be made until after 30 days of separation from the state. To set up a meeting with a Peach State Reserves Local Plan Consultant, call and press option 2.

NOTE: 401(k) withdrawals made prior to age 59 ½ are generally subject to an early withdrawal penalty. If your new employer accepts rollovers, you can roll your 401(k) and/or 457 plan to your new plan and continue to maintain tax deferred status on the money, however you should keep in mind that 457 plan balances are not subject to the early withdrawal penalty described above. If you roll your 457 balance to a 401(k) plan, it will become subject to 401(k) plan rules, including the early withdrawal penalty if you subsequently choose to take a distribution from the new plan prior to age 59 ½.

Contact Information

Pension/Retirement benefit information – Employees’ Retirement System of Georgia
800-805-4609, Local 404-350-6300
www.ers.ga.gov

Peach State Reserves 457 and 401(k) - GaBreeze
877-342-7339
www.gabreeze.ga.gov

Health Insurance information – Dept. of Community Health State Health Benefit Plan (SHBP)
800-601-1863, Local 404-656-6322
www.dch.georgia.gov

Flexible Benefits – GaBreeze
877-342-7339
www.gabreeze.ga.gov