The Voluntary Savings Plan, also known as the Employee’s Savings Account, is an account funded solely by post-tax, voluntary contributions from a Public Employees’ Retirement System (PERS) employee. Contributions made to a Voluntary Savings Plan are separate and completely independent of the mandatory contributions that each PERS employee is required to make to the retirement system as an active employee.

Any active employee under Tier I, II or III that is making contributions to the PERS is eligible to enroll in the Voluntary Savings Plan. You can enroll at anytime. Enrollment will take effect the first of the month following receipt of the election form.

The Voluntary Savings Plan provides an opportunity for employees of the PERS to invest their money in an account that will accrue 4.5% interest until the funds are disbursed to the employee in the form of a lump sum payment, life annuity, or installments over a designated period of time.

Lump Sum Payment

A Lump Sum Payment is a full cash withdrawal of your contributions to the savings plan, plus interest.

Life Annuity

• Life Annuity
  A monthly benefit is calculated and disbursed to you during the course of your lifetime. Monthly benefits will cease in the event of your death, however, if you die before the full account balance is paid, the remaining balance would be paid to your beneficiary.
• Life Annuity With a Five-Year Certain Period
  Monthly payments for your lifetime. If you die before 60 payments have been made, your beneficiary will receive the balance of the remaining payments.
• Life Annuity With a Ten-Year Certain Period
  Monthly payments for your lifetime. If you die before 120 payments have been made, your beneficiary will receive the balance of the remaining payments.

Installments over a designated period of time

The account balance, plus interest, is disbursed to you on a monthly basis. The balance of your account would be divided by the number of months you designated payment to be made.

Lump Sum Payment

Although the post-tax contributions that are made to a Voluntary Savings Plan would not be taxed when payment is made, the interest that accrues on Voluntary Contributions is considered income and is taxable upon payment of the account.

As a PERS employee you are eligible to contribute a minimum of $5.00 and up to 5% of your gross salary to a Voluntary Savings Plan. You can change the amount you are contributing at anytime. The change will take effect the first of the month following receipt of the Voluntary Savings Plan Enrollment, Change, Discontinuation or Withdrawal (pers050) form .

There is a 60-day waiting period after retirement or termination from employment before payment can be made from a Voluntary Savings Plan. However, an exception can be made for those who have a financial need.

You can terminate your enrollment at anytime. Termination will take effect the first of the month following receipt of the Voluntary Savings Plan Enrollment, Change, Discontinuation or Withdrawal (pers050) form .