Leaving the City Before Retiring

If you leave the City before you are eligible to retire, you have two options for your contributions— you may leave your contributions in the Fund if you are a vested member who has earned a deferred retirement benefit or you may receive a refund of your contributions.

Deferred benefit

If you have at least five years of service credit when you terminate employment, you have earned a deferred benefit in the Fund. You are entitled to retirement benefits as long as you elect to leave your contributions in the Fund. A monthly benefit will be paid to you upon reaching retirement eligibility.

Inactive members with more than 10 years of credited service who terminated employment before becoming eligible for a normal, early, or service retirement pension are eligible to apply for a disability retirement pension.

Less than five years of pension service

If you leave the City with fewer than five years of service credit, you have two options for your pension contributions:

1. Apply for a refund of your contributions with a refund application or
2. Apply for a rollover of your contributions into another qualified plan. Use the refund application to apply for a rollover as well as a refund.

You must make a written request for a refund of your contributions within three years after your termination. If you do not make this request within three years, you will forfeit your contributions. If you leave the City and then die less than three years later without receiving a refund, your beneficiary can apply for a refund of your contributions.

Withdrawal of contributions

When your employment ends, you can request a refund of your contributions from the Fund. If you take a refund, you will not be entitled to retirement benefits. You must pay current federal income taxes on your refund of before tax contributions.

You may make a direct rollover of your before-tax contributions made to the Fund after December 16, 1997. With a direct rollover, you delay paying federal income taxes on your before tax contributions until you withdraw them. Plans that may accept a direct rollover from the Fund include:

•  Individual retirement accounts (IRAs)
•  Individual retirement annuities
•  Annuity plans
•  Qualified trusts

The Fund does not permit partial withdrawals or loans.

•  To request a refund of contributions you must:
•  Complete a Refund Application
•  Meet with a member of the Fund staff
•  Select a rollover option

Contact the Employee's Retirement Fund office for the appropriate forms and information regarding the refund process. The Retirement Fund staff is not qualified to answer individual tax questions or give tax advice. If you have specific tax questions, you should speak to a tax professional or the appropriate federal tax agency.

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