Info For Public Workers

Public pension benefits accumulated during one’s marriage are typically considered marital property, meaning that in the event of a divorce your former spouse may be entitled to a portion of your future benefits. However, the portion that they are entitled to may be affected by the plan’s vesting schedule, your age, and other factors. The laws surrounding pensions and the division of marital property in a divorce vary greatly by state, so it’s important to consult with a legal professional in your area in such a situation.

Most pensions are not portable. That means your benefits will usually stay within the retirement system where they were earned, and you may not be able to take them with you if you move to a new state. However, if your pension benefits are vested in a particular system before moving to a new state, you are entitled to receive the amount accrued when you reach retirement. If your pension benefits were not vested, you can elect to withdraw the amount contributed, plus any interest earned (if interest is allowed by plan rules). Even if you are vested, you are eligible to withdraw with a retirement. Rules vary by state and plan, so consult your plan administrator before relocating to understand the specific impact on your future benefits.

Most plans allow employees to leave a portion or the entire amount of a pension to a spouse when you die. However, the specifics depend on the survivor benefit provided by your particular plan and whether you are in retirement or still working at the time of your death. Be sure to review your plan handbook to confirm its specific rules regarding beneficiaries. 

If you take a new job that is covered by the same retirement system as your prior job, there will likely be no impact on your pension. If your new job falls under a different retirement system, however, your years of service from the prior job may be credited and count toward your new vesting schedule. Be sure to check with the pension plan administrators of both systems to verify this before switching jobs.

The value of your defined benefit payment in retirement is typically calculated using the following formula: Years of Service X Multiplier X Final Average Salary. To find out if your plan provides adequate income in retirement, look up your plan’s interactive scorecard in our Retirement Security Report.

Most public employees in the United States must work for at least five to seven years to qualify for any pension benefits. This is known as vesting. For employees who leave their job before vesting, they typically are entitled to receive only a return of their own contributions. To qualify for benefits from a traditional pension system, a public employee must meet certain requirements, which are typically based on age and years of service. Consult your plan’s handbook for specific details about vesting and your eligibility to claim benefits.