Last Updated: May 2007
The following rules apply to state elected officials who choose to be covered by the Public Employees’ Retirement System (PERS) Plan 2 or Plan 3 while in office. You are eligible to participate in PERS Plan 2 or Plan 3 while in office if:
You are not required to join PERS membership while serving in your elected position. However, if you would like to become a member while in office, you must apply to the Department of Retirement Systems (DRS).
You may apply for membership at any time during your current term of office. If you enter membership after your current term of office has begun, membership will be retroactive to the first day of your current term of office. You will be required to pay employee contributions plus interest back to the first day of your term.
Your membership decision is final: Once you have established retirement system membership, you must remain a member until you separate from all eligible public employment. If you serve an additional term of office with the same employer without a break in service, you will remain a retirement system member until you terminate employment.
If you separate from service and leave office, you will not be considered separated if you return to office for the same employer during the term in which you left.
When you have established membership for your current term, you may have the option of purchasing service credit for any previous term or terms of office during which you did not choose to apply for membership. Membership will be granted retroactively to the beginning of your elected service.
To receive service credit for any previous term or terms of elected service, you must pay the required employee and employer contributions and interest, as determined by DRS. Your employer may elect to pay the required employer contributions and interest for you.
All prior consecutive service must be purchased. If you have served multiple terms in office with different employers, you may purchase credit for service with each employer independently.
If you do not choose to become a member while holding elected office, and later become an active PERS Plan 2 or Plan 3 member in a non-elected position, you may then purchase credit for your elected service.
The amount of service credit you earn helps to determine the size of your retirement benefit. As a state elected official, you:
Service in any state elected position is considered full-time service. For example, if you serve a full year as a legislator you will receive a full year of service credit regardless of the number of hours you worked in any month. If you resign prior to the end of your term you will earn service credit for each month in which you received compensation.
The portion of your benefit based on your legislative service will be calculated according to the following formula:
Plan 2
2 percent x service credit years x Average Final Compensation (AFC) = Monthly benefit
Plan 3
1 percent x service credit years x AFC = Monthly benefit
Average Final Compensation is the monthly average of your 60 consecutive highest-paid service credit months
Legislative service: If you are a PERS Plan 2 or Plan 3 legislator on a leave of absence from a PERS position for the purpose of serving in the state legislature, your total earnings may include the salary you would have received in the position you left, if your employee and employer contributions are paid.
Plan 2 contribution rates are variable and may be changed as necessary to reflect the cost of the plan.
In Plan 3, the amount you contribute depends on the contribution rate option you choose. Plan 3 features six contribution rate options that, once selected, may only be changed if you change employers.
The Plan 3 contribution rate options are:
You may retire during your term of office and continue serving in your elected position, if:
If you are a retired PERS Plan 2 or PERS Plan 3 member when elected to office, you can choose to either remain retired and continue receiving your retirement allowance while serving in office, or return to active member status while serving in office.
If you choose to remain retired while in office, you can work up to 867 hours in a calendar year without loss of benefits. Your benefits will be suspended if you work beyond 867 hours in a calendar year, and will remain suspended until you terminate PERS-covered employment or until the end of the calendar year, whichever comes first.
If you return to active member status, you will stop receiving a monthly retirement benefit, and you will resume making contributions to your retirement system and accumulating service credit prospectively from the first day of the month following the date the department accepts your application for membership.
To begin, continue or reestablish PERS Plan 2 or Plan 3 membership, contact DRS and provide the following information:
DRS will send you a letter and application once your provide us with all of these items.
More information about elected or governor-appointed officials is available by contacting DRS. Additional rules governing all PERS Plan 2 or Plan 3 members are summarized in the PERS Plan 2 or Plan 3 Member Handbook. To obtain a copy of a member handbook, or for more information about governor-appointed service, contact DRS.
This brochure does not contain a complete description of the law. If there are conflicts between the information contained in this brochure and retirement law, the applicable law will govern.
This publication is available in alternate formats.
