Leaving Before Retirement
If you have eight or more years of service credit in GARS when you terminate employment (leave office), you may choose to:
If you terminate active membership with fewer than eight years of GARS and/or correlated service credit and are less than 60 years old, you would only be eligible for a refund of contributions and interest.
Refund of Contributions
If you terminate employment, you may request a refund of your employee contributions plus interest by filing a Refund Request (Form 4101) with the Retirement Systems. However, you are not required to withdraw your contributions and interest at termination. Please note that by receiving a refund, you forfeit your rights to any future service retirement or disability benefits. Also, employer contributions are not refunded.
The Internal Revenue Service requires that the Retirement Systems withhold federal taxes of 20 percent on any portion of your taxable refund not transferred directly into another qualified retirement system. Other taxes and penalties may apply as well. Check with an accountant or tax advisor regarding your tax liability.
Deferred Monthly Benefit
If you have at least eight years of service credit (earned, purchased or correlated) in GARS when you leave office, you may leave your contributions and interest in your GARS account and apply for a deferred monthly benefit at age 60.