4.6 Disability Service .......................................................................................................... 19 4.7 Purchase Service .......................................................................................................... 19 Basic Qualifications ............................................................................................................ 19 Cost to Purchase Creditable Service ..................................................................................... 20 Purchase Out-of-State Service Credit .................................................................................... 20 Purchase Military Service Credit ........................................................................................... 20 Purchase “Air Time” Service Credit ...................................................................................... 21 Purchase Service from PERF My Choice ................................................................................ 21 Paying For Service ............................................................................................................. 22 4.8 Reinstatement of Service Credit...................................................................................... 22 4.9 Service Credit Inquiry .................................................................................................... 22 5 Investment Options ........................................................................ 23 5.1 Options ....................................................................................................................... 23 Stable Value Fund .............................................................................................................. 23 Retirement Fund ................................................................................................................ 23 5.2 Investment Considerations ............................................................................................. 24 5.3 Making Changes ........................................................................................................... 24 5.4 Suspension of Membership ............................................................................................ 24 Rollover Funds for Inactive Member ...................................................................................... 25 6 Withdrawals, Distributions, and Loans .............................................. 26 6.1 Eligibility for a Distribution ............................................................................................. 26 Distribution at Age 59½ ..................................................................................................... 26 6.2 Ineligibility for a Distribution ........................................................................................... 26 6.3 Requesting A Distribution .............................................................................................. 26 Distribution of Your DC Account .......................................................................................... 27 Voluntary Member Contributions .......................................................................................... 27 Distribution of Rollover Funds .............................................................................................. 27 6.4 Distribution Payment Options ......................................................................................... 27 Direct Rollover................................................................................................................... 27 Paid Directly to You ........................................................................................................... 28 Tax Penalty – Early Withdrawal of Your Defined Contribution Account ...................................... 28 7 Pension Benefits ............................................................................ 29 7.1 Regular Retirement Requirements for A Full Pension .......................................................... 29 7.2 Retirement Effective Date .............................................................................................. 29 7.3 Retirement Benefit Payment Dates .................................................................................. 29 7.4 Calculating A Retirement Pension Benefit Estimate ............................................................ 29 7.5 Final Average Earnings Calculation .................................................................................. 31 7.6 Regular Retirement without Employer Separation (Active, In Service) ................................... 31 7.7 Millie Morgan Retirement ............................................................................................... 31 7.8 Elected Official Retirement ............................................................................................. 32 Retired Members in Elected Positions .................................................................................... 32 7.9 PERF Retirement for Members of PARF ............................................................................ 32 7.10 Early Retirement with a Reduced Benefit .......................................................................... 33 7.11 Disability Retirement ..................................................................................................... 33 Disability Retirement Eligibility ............................................................................................. 33 Disability Benefits .............................................................................................................. 34 Public Employees’ Retirement Fund Hybrid Plan Page 3 of 48 Member Handbook Effective: 07/01/2024