What is a refund?
A refund is a lump sum returned to you of your accumulated total deductions plus accrued interest which have been set aside in an individual account in the Annuity Savings Fund administered by your retirement board. Monies held in the Annuity Savings Fund earn interest at a rate set annually by PERAC in conjunction with the Commissioner of Banks. This interest is called "regular interest". (Please see the discussion about interest payments that follows.)
What are possible consequences of asking for a refund?
You should always seek counseling prior to withdrawing your funds. If you withdraw your funds, and then return to membership after April 2, 2012, a new set of rules will apply to you.
When may I request a refund of my contributions?
You may request a refund following your termination from public service. Although the length of time it takes to process a refund varies among retirement boards, the law says you shall receive your refund within 60 days after filing a written request on a prescribed form with your retirement board.
Will I be taxed on this refund?
There may be substantial federal tax consequences if you take a direct refund of your deductions rather than directly rolling them over into another qualified retirement plan. Your retirement board will provide you with information about the potential tax consequences.
May any agency intercept my refund?
An individual's ability to obtain a refund may be affected by a Department of Revenue Child Support Enforcement Order.
Is anyone ineligible to apply for a refund?
Yes, the most notable group of people being retirees. All members who are receiving retirement allowances are ineligible to request a refund because their accumulated total deductions are being used on an ongoing basis to provide a portion of their retirement allowance.
Is anyone other than a retiree ineligible for a refund of his or her annuity account?
In addition to those members who are already retired, you may not request a refund if:
• you continue to be a member-in-service,
• you are on an official leave of absence,
• you have a Workers' Compensation claim pending or if you are receiving Workers'
Compensation benefits for total incapacity,
• you have been charged with, or convicted of, misappropriation of funds or property of the
governmental unit by which you were employed,
• you are appealing a dismissal or you have otherwise expressed your intent to continue in