Refunds
Are you thinking of requesting a refund of your PSRS retirement account? Taking an account refund may be the right decision, given your personal circumstances. But it is important to understand the implications of this decision, as well as the benefits of retaining your PSRS membership.
In most cases, the benefits our members receive as retirees greatly exceed the amount they accumulated in their retirement accounts and would receive as a refund. Once a refund is issued, you forfeit your PSRS credit, your membership ends, and you lose the right to receive future service or disability retirement benefits. This can greatly impact your income during retirement.
Eligibility
Once 30 days have passed since you ended all PSRS-covered employment, you may request a refund of all of your account funds, unless you are:
- Under an agreement for future employment with any PSRS-covered employer,
- On a leave of absence, or
- Finishing a school year with one PSRS-covered employer and starting the next school year with another.
Refund Amount
Your refund includes all your contributions, payments made to purchase or reinstate credit, and the interest you have earned as of the previous June 30. You can find out how much this is by logging in to your online account, or by referring to your last annual Member Statement. Partial refunds or loans against your account balance are not available.
Employer matching contributions made on your behalf are not credited to your account and are not refundable.
Careful consideration should be given to the potential tax consequences of a refund. If you request a refund, detailed tax information and payment options are provided.
Applying for a Refund
To receive an account refund, you must complete and return all pages of the Refund Application to PSRS. Contact us for this application.
- Do not submit the application until 30 days after your last day of covered employment.
- Complete the rollover portion of the application only if you wish to directly rollover your funds to a qualified retirement plan.
- The application must be notarized.
- Failure to properly complete the application could delay payment of your refund.
Payment of Your Refund
Payment can take up to 60 days after receipt of your properly completed Refund Application. The amount of time needed to make payment depends on whether you were employed in the current school year. If so, PSRS must verify your employment and contributions with your employer. If you earn a full year of credit during your last year, the earliest possible refund date is the end of July.