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Leaving Before Retirement  If you leave your job and terminate all employment covered by the South Carolina Retirement Systems, you have two options concerning your contributions:
Request a Refund To receive a refund of your accumulated contributions and interest, you must complete a Refund Request (Form 4101) and return it to the Retirement Systems. You may submit your refund request immediately upon termination; however, by law, there is a minimum 90-day waiting period from your date of termination until a refund can be made.
If you request a refund, you forfeit your rights to any future service retirement or disability annuity. Employer contributions are not refunded. If you are working for two or more covered employers and/or contributing to more than one retirement account (i.e., working two jobs and paying into an SCRS and a PORS account), you must stop working in all correlated systems to request a refund from any account.
Instead of having the refund paid directly to you, you may choose to roll over the funds into an Individual Retirement Account (IRA), a 401(k) plan, a 401(a) eligible plan, a 403(b) plan, or some 457 plans (the South Carolina Deferred Compensation Program's 457 plan does not accept rollovers from your Retirement Systems account).
The Retirement Systems is required to withhold federal taxes of 20 percent on the taxable portion of any refund that is eligible for a rollover but is not transferred directly into another qualified retirement plan. Other taxes may apply as well.
Under the federal Pension Protection Act of 2006 (PPA), the 10 percent withdrawal penalty is waived for public safety members who separate from service after age 50, and for military reservists and national guardsmen who are called to active duty for at least 180 days.
Be sure to check with an accountant or tax advisor regarding your tax liability.
Leave Funds on Deposit When you leave your money on deposit, your account continues to accrue interest and you retain your years of service credit, which may be added to any future service you may accrue should you later be employed in a position covered by the South Carolina Retirement Systems.
You may apply for a refund at a later date or apply for a service retirement annuity upon reaching eligibility, including minimum service requirements. No action is required if you wish to retain your membership and leave the funds on deposit, but it is your responsibility to keep the Retirement Systems informed of your current address or any changes in name or beneficiary. |
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