95 Years of PERA
We are celebrating our 95th anniversary on April 24, 2026!
In 1931, during the Great Depression, a group of public employees asked the State of Minnesota to create a retirement association to serve public employees who were not covered by the State’s existing retirement plan. The Minnesota legislature established the Public Employees Retirement Association (PERA) of Minnesota on April 24, 1931.
We are grateful for the opportunity to serve our members, employers, and stakeholders for the past 95 years. Thank you for your public service to Minnesota.
Break-Even Calculator
A new resource is available on PERA’s website: the Break-Even Calculator.
Ending public employment does not mean you have to start your pension right away. If you are younger than full retirement age for your plan, you may want to wait to start receiving benefit payments later. The Break-Even Calculator helps you choose the best option for yourself.
Use the Break-Even Calculator to help decide whether to
- start your benefit now or
- defer your benefit to a later date.
The Break-Even Calculator finds your break-even point, which is the date starting your benefit now compared to starting your benefit later pays you the same total amount.
- Starting your benefit now means you can enjoy your monthly payments sooner.
- Starting your benefit later means your monthly payments may be higher.
While the Break-Even Calculator is a useful tool, factors like your health, financial goals, and other income sources are also important parts of your retirement decisions.
Break-Even Calculator Example
Bill ends public employment at age 65. He is wondering if he should start his PERA benefit now (age 65) or wait until age 66 (his full retirement age).
Bill uses the Retirement Calculator in his myPERA account to find his monthly benefit amounts at ages 65 and 66. Then, Bill enters those amounts into the Break-Even Calculator to find his break-even point.
Option 1: Start Benefits Now (Age 65)
- Benefit effective date: June 2025
- Monthly benefit amount: $2,300
Option 2: Start Benefits Later (Age 66)
- Benefit effective date: June 2026
- Monthly benefit amount: $2,530
Break-Even Calculator Results
- Difference between benefit amounts: $2,530 - $2,300 = $230
- Time between benefit effective dates (June 2025–June 2026): 12 months
- Amount Bill would receive before the later benefit effective date (June 2026) if he started benefits on the earlier benefit effective date (June 2025): $2,300 x 12 months = $27,600
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Break-Event Point: $27,600 / $230 = 120 months, or 10 years
Bill adds his break-even point (10 years) to his later retirement age (66): 10 + 66 = 76, which means Bill will break even at age 76. In other words, Bill must receive $2,530 each month for 10 years (or 120 months) for the delayed benefit to be the better option.
If Bill lives past age 76, starting his benefit later pays him a higher total amount. If not, starting his benefit now may be the better choice.
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Direct Deposit
Direct deposit allows your benefit payments to be electronically deposited into your account on the first banking day of each month.
You can update your direct deposit information anytime.
If you would like to update your direct deposit information,
- Update your information in your myPERA account or
- Complete a Direct Deposit Agreement.
- Complete and sign the form (e-signatures are not accepted).
- Mail, fax, or drop off the form at our office.
We will mail you written confirmation of your direct deposit changes after we process your request.
When you receive your first direct deposit payment depends on when you updated your direct deposit information.
- If you change your direct deposit information after the seventh of the month, you may receive a paper check instead of direct deposit for the next month. After that, you’ll receive direct deposits.
Tax Withholding
Your retirement benefit is subject to federal and state income taxes. PERA can withhold federal income tax for everyone and state income taxes for Minnesota residents. If you are not a Minnesota resident, contact your state for tax requirements.
You can change your tax preferences anytime.
If you would like to update your tax withholding preferences,
- Use your myPERA account or
- Send PERA completed tax forms:
- Submit Form W-4P to adjust your federal tax withholding.
- Submit Form W-4MNP to adjust your Minnesota state tax withholding.
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