What is the Partial Annuity Withdrawal Program?

Since July 1, 2001, APERS members who work beyond the date they are eligible for an unreduced monthly benefit are eligible to take an advance payment of up to 60 months of their monthly annuity. This is called a Partial Annuity Withdrawal (PAW).

This provides an alternative for members who can’t participate - or choose not to participate - in the Deferred Retirement Option Plan (DROP). PAW is elected at retirement.

When do I become eligible to participate in the PAW program?

You become eligible to participate in PAW when you have worked beyond the following eligibility requirements:

  • Age 65
  • Any age with 28 years
  • Age 55 with 35 years of credited service

Can you explain how my PAW payment will be calculated?

When you sign up for PAW, you may receive, within 90 days of retirement, a payment for each full month you worked beyond your retirement eligibility date up to a maximum of 60 months.

Example - John Doe works 60 months beyond the date he was first eligible for an unreduced benefit. When John retires, he may choose from 1 to 60 months of PAW. John’s lifetime monthly benefit is reduced based on his age and total PAW payment.

Remember, if you elect PAW your monthly annuity benefit will be reduced by an actuarial factor tied to your age. If your beginning benefit includes a “temporary” amount because you retire below age 62, that temporary benefit will still be removed when you reach age 62.

Will taxes be withheld from my payment?

On lump sum payments, APERS withholds 20% for federal taxes and 5% for state taxes. Lump sum payments under age 55 may be subject to early withdrawal penalties.

How will I receive payment?

Your PAW payment can be paid

  • Directly to you as a lump sum.
  • As a rollover distribution to a qualified retirement plan.
  • As a partial lump sum with the remainder rolled over to a qualified retirement plan.

What's the earliest I can submit my retirement application and PAW Election Form?

You must apply for an unreduced retirement and PAW no more than 90 days, and no less than 30 days, before your retirement effective date.

How do I apply for PAW?

If you are eligible for PAW, you will be able to request that option when you apply for retirement benefits through the member's portal.  If you are filing a paper retirement application, you will need to file the PAW Election and Distribution forms along with it.

Who do I contact to request forms or get more information on PAW?

Contact Member Services by phone or in writing to request a retirement application, PAW election and distribution forms, filing deadlines, or to get answers to other questions. 

Arkansas Public Employees Retirement System 
124 W. Capitol Ave., Suite 400 
Little Rock, AR 72201 
501-682-7800 Local Phone 
1-800-682-7377 Toll Free

Click below to return to the FAQ home page.

FAQ Main

Arkansas public employees retirement system

Here you will find information based on your role in our system, whether you are an active member, near retirement, a retired member or an APERS participating employer.