LIMITATIONS ON INTEREST

If I apply for a refund when I resign, am I entitled to receive full payment of the interest that my contributions have earned during my public service?

There can be limitations on the payment of the interest that has accrued in your Annuity Savings Fund account at your retirement board. These limitations can affect individuals whose membership began after January 1, 1984.

• Less Than Five Years
  If you voluntarily withdraw from public service with less than five years of creditable service, you will receive no interest on your accumulated deductions.
  
  
• Five Years, But Less Than Ten Years
  If you voluntarily withdraw from public service with a minimum of five years of creditable service but less than ten years of creditable service, you will receive 50% of the interest that has accrued on your payroll deductions over the entire length of service.
  
  
• At Least Ten Years
  If you voluntarily withdraw from public service with at least ten years of creditable service, you will receive 100% of the interest that has accrued.

RESTRICTIONS ON WITHDRAWAL OF ANNUITY MONIES

Who is ineligible to apply for a refund?

• 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.
  
  
• Others Who Are Ineligible
  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 public employment.
  

CHANGE IN DUAL MEMBERSHIP STATUS

May I request a refund upon termination from one of my public service positions?

• Account Refund or Transfer
  If you terminate from one position for reasons other than retirement, but continue to be employed by another governmental unit, your retirement account may be refunded to you upon your written request if your contributions to your first position’s retirement system are less than your contributions to the retirement system of which you remain a member. Otherwise, your account must be transferred to the retirement system of the governmental unit in which you are still actively employed.
  

TRANSFERRING WITHIN PUBLIC SERVICE

May I request a refund upon transferring from one public service position to another?

• Contributory Retirement Law Provisions
  You are not entitled to a refund if you have resigned for the purpose of accepting an appointment to a position in the service of the Commonwealth of Massachusetts or a political subdivision thereof, which is subject to the provisions of the contributory retirement law.

REPAYMENT OF CONTRIBUTIONS

If I return to public service, am I required to return contributions that I withdrew?

• Optional Repayment
  When you return to public service, you are not required to pay back any contributions that you withdrew.
  
  Repayment of these monies plus interest to re-establish your earlier creditable service is optional.

BUYING BACK CREDITABLE SERVICE

How do I re-establish creditable service for retirement purposes?

• Extent of Buyback
  Your prior creditable service will count toward your retirement allowance only to the extent that you buy back the creditable service associated with the annuity savings fund deductions that were refunded to you. “Buy-backs” must include the amount withdrawn plus interest to the date of repayment. If approved by the retirement board, “buy-back” payments can be made on an installment basis.

INTEREST ACCRUAL

What if I continue to maintain my Annuity Savings Fund Account with the retirement system even though I have resigned from public service? Will interest still continue to accrue on my Account?

• Two-Year Period
  Your accumulated deductions will continue to earn interest after you resign. The interest that may be paid to you, if you later seek a refund, is limited to that which accrues during the first two years following your resignation. As is the case with interest earned prior to withdrawal from public service, your date of employment and length of service will determine how much of the interest accrued during this two year period can be paid to you. Please see the answer under “Limitations on Interest” for the details.

If I return to public service without having taken a refund, will my Account earn interest?

• Period of Absence
  If you maintain your Account with the retirement system and later return to public service, interest will be credited to your Account for the entire period of your absence. If you again leave public service and request a refund, the limitations stated above will apply.