What are vesting and deferred retirement?
Vesting means that you are guaranteed to begin receiving a pension in the future when you would have been eligible to retire had you remained in full time employment. An employee who terminates employment with at least 5 years of credited service is automatically granted a deferred retirement. A deferred retirement means that your money remains on deposit, continues to earn interest, and at that point in time when you would have been eligible for retirement, you can commence receiving a monthly retirement allowance based on your years of credited service and the final compensation when you terminated employment. For persons who terminate with less than 5 years of service, the earliest they can begin receiving a retirement would be age 70. Under deferred retirement, you may elect to withdraw your funds at any time.
