Back to Frequently Asked Questions What does the term “vested” mean with respect to retirement?
With relationship to retirement, the term “vested” relates to eligibility to receive a monthly benefit from your retirement fund (State Employees Retirement System/Public School Employees Retirement System) if you terminate state service prior to “normal” retirement age. If you terminate state service prior to “normal” retirement age and you are vested, you may be eligible to receive monthly benefit from the state share that will be actuarially reduced based on your age. You could also elect to vest – leave your accumulated deductions in the retirement system and elect not to receive a monthly benefit when you leave state service. After you vest, your retirement benefit will be based on credited services and earnings. No extra credit will be earned during your vested period except for interest on accumulated deductions.
