Apply for DCP Benefits

DCP members can take a distribution of the values of shares held in the account after DCP-covered employment is terminated. If you are actively employed by a DCP-covered employer, you are not eligible for a distribution, even if you have stopped contributing to your plan.

Since the DCP is a tax-qualified plan, contributions made to PERA by you and your employer are tax-deferred and will be considered taxable income when you take a distribution from your DCP account. All investment earnings you receive are also considered taxable income. 

Rollover 

If you transfer your refund to a tax qualified plan that accepts rollovers, your refund will not be taxed at the time of the transfer. Your refund will be mailed to you but issued to your tax-qualified plan.

Lump-Sum

If you choose a lump-sum payment you are subject to federal taxes and state taxes. If you are under age 59 ½, you will also pay a 10% federal early withdrawal additional income tax, unless an exception applies.

After you terminate DCP-covered employment, you may apply for a refund. To apply, send PERA these completed items:

1. Notarized Refund Application. Only applications with original ink signatures will be accepted.
2. (Optional) W-4R federal tax form and/or W-4MNP Minnesota state tax form. If you would like to withhold a tax amount other than the default, send the additional tax forms. 

Your DCP account is payable as a lump sum and is paid 30–120 days after PERA receives your completed application. The time it takes to receive your distribution will vary depending on when we receive your remaining payroll transactions.

If you are over 65 and want to continue working at your public employer, please contact us for the active employee refund application. You may elect a distribution of at least $5,000 or more of your DCP account once each calendar year. The required minimum distribution is $5,000.