The following provisions generally govern a member's withdrawal and refund of employee contributions under the plan. Any member who fails to make application for the amount of his or her employee contributions pursuant to this section within five years after his or her separation from the service of the county, except as otherwise provided herein or otherwise determined by the pension board, shall be deemed to have forfeited and donated such employee contributions to the trust fund pursuant to Section 45-37-123.83. The foregoing five year rule only applies to a member; in the case of a beneficiary, the pension board may only forfeit employee contributions after it has exhausted reasonable efforts to locate the beneficiary.
(1) WITHDRAWAL OF EMPLOYEE CONTRIBUTIONS BY MEMBERS NOT ENTITLED TO A DEFERRED RETIREMENT BENEFIT. In the event that a member ceases to be an employee of the county for reasons other than retirement, death, or disability before he or she is eligible for a deferred retirement benefit, such member, upon written application therefore to the pension board, shall be paid the full amount of his or her employee contributions, without interest.
(2) WITHDRAWAL OF EMPLOYEE CONTRIBUTIONS BY MEMBERS ENTITLED TO A DEFERRED RETIREMENT BENEFIT.
a. General Rule. Subject to the limitations stated in paragraph b., in the event that a member ceases to be an employee of the county for reasons other than retirement, death, or disability when he or she is eligible for a deferred retirement benefit, but has not elected a deferred retirement benefit, such member, upon written application therefore to the pension board, shall be paid the full amount of his or her employee contributions, with interest. The provisions of Section 45-37-123.100(c)(1)b. shall govern the withdrawal of employee contributions for any member who has elected a deferred retirement benefit, but has not yet been paid.
b. Rules and Regulations. The pension board shall establish rules and regulations setting forth the amount of interest payable to members under this subdivision. In establishing such rules and regulations, the pension board shall take into consideration the interest the system has earned on the employee contributions paid into the trust fund on account of the member withdrawing such employee contributions. The pension board may amend such rules and regulations at any time in its sole discretion.
(3) PARTIAL REFUND OF EMPLOYEE CONTRIBUTIONS AND CESSATION OF EMPLOYEE CONTRIBUTIONS AND EMPLOYER CONTRIBUTIONS. When a member attains 30 years of paid membership time, the member may elect to terminate his or her employee contributions by filing with the pension board a statement signed by the member stating that he or she elects to terminate his or her employee contributions; in such case, the employer contribution to the trust fund on the member's behalf shall cease. As soon as practicable after a member files such statement, the pension board shall refund to him or her all employee contributions, without interest, made by him or her to the trust fund subsequent to the date on which the member accumulated sufficient service to entitle him or her to the maximum benefit that can be provided under the plan; additionally the pension board shall refund to the county any associated employer contributions, without interest.
(4) REFUNDS UPON DEATH OF A MEMBER.
a. Refund of Employee Contributions for Deceased, Nonvested Active Members Not Entitled to Deferred Retirement Benefits. If a nonvested active member dies, then an amount equal to the total amount of such member's employee contributions, without interest, shall be refunded to the member's beneficiary in one lump sum payment.
b. Refund of Employee Contributions for Deceased, Vested Members Entitled to Deferred Retirement Benefits, but No Payments Have Commenced.
1. Eligibility. Unless an election has been made in accordance with Section 45-37-123.103 to receive a preretirement joint survivorship pension, if a vested member dies, before payments have commenced, then an amount equal to the total amount of such member's employee contributions, with interest, shall be refunded to the member's beneficiary in one lump sum payment. This rule shall apply regardless of whether the member dies while active, or after a deferred retirement election has been made, so long as payments have not commenced.
2. Rules and regulations. The pension board is authorized to adopt interest rules and regulations providing for the pension board to pay to a beneficiary interest at the rate prescribed in such rules on the member's employee contributions that are to be refunded to the beneficiary. The interest rules and regulations established shall prescribe the terms and conditions on which such interest shall be payable and may impose such limitations on the payment of interest as the pension board deems appropriate.
c. Refund of Employee Contributions for Deceased Members Who Previously Elected a Postretirement Joint Survivorship Pension.
1. Eligibility - Retired member. Subject to items (i) to (iii), inclusive, of subparagraph 2., if a retired member dies after a postretirement joint survivorship pension has been elected, then a refund may be paid in one lump sum only as set forth in subparagraph 2.
2. Rules and regulations. The pension board is authorized to adopt rules and regulations providing for the pension board to refund a member's employee contributions after such member dies with a postretirement joint survivorship pension election in place and to pay interest on any such refund, subject to the conditions and limitations stated below:
(i) Such postretirement joint survivorship pension election shall not be repealed or rescinded but shall be in effect at the time of the refund, and the member shall have enough service at the time of his or her death to be entitled to a deferred retirement benefit if a refund were not made; and
(ii) Both the member and the member's primary beneficiary shall be deceased, thus, no refund is payable in the event that only the member dies while receiving payment of a postretirement joint survivorship pension; and
(iii) The member's employee contributions shall exceed the sum of all monthly retirement benefits the plan has paid to the member and/or the member's beneficiary.
3. Amount of refund. If each of the requirements in subparagraph 1. and subparagraph 2. are met, and the pension board has adopted rules and regulations in accordance with subparagraph 2., then the amount of the refund shall be equal to the amount by which the member's employee contributions exceed the sum of all monthly retirement benefits the plan has paid to such member and/or such member's beneficiary, with interest as provided by rules and regulations adopted by the pension board.
4. Payment made to contingent beneficiary. A refund pursuant to this paragraph shall be paid to the member's designated contingent beneficiary, or, to the member's estate if the contingent beneficiary also is deceased or there is no properly designated contingent beneficiary.
5. Death while active member. In the event that an active member dies after a postretirement joint survivorship pension has been elected, such election shall be deemed void and the provisions of Section 45-37-123.103(a), preretirement death benefits, shall apply.
d. Refund of Employee Contributions for Deceased Members Who Were Receiving Superannuation, Early, Disability, or Deferred Retirement Benefit Payments. In the event that a member dies while receiving a superannuation retirement benefit, an early retirement benefit, a disability retirement benefit, or a deferred retirement benefit, then his or her beneficiary shall be entitled to receive a refund in an amount equal to the amount by which the member's employee contributions exceed the sum of all monthly retirement benefits the plan has paid to such member, with interest.
e. Proof of Death and Marriage. The pension board may require proper proof of death or marriage in accordance with Section 45-37-123.103(f).
(5) EMPLOYER CONTRIBUTIONS REMAIN IN TRUST FUND. Employer contributions are never refunded to the member or the member's beneficiary. All associated employer contributions shall remain in the trust fund, except such employer contributions that are returned to the county pursuant to subdivision (7).
(6) CESSATION OF EMPLOYMENT. Unless otherwise specifically provided in the plan, such as, pursuant to subdivision (7), a member shall cease to be an employee of the county in order to receive a refund of employee contributions.
(7) REFUNDS TO CORRECT ERRORS. The pension board, in its sole discretion, may refund employee contributions and associated employer contributions to the county to correct various errors, such as, inclusion in the plan of an ineligible individual or overpayment of employee contributions, in accordance with Section 45-37-123.23(b).
(8) NO REFUNDS FOR QUALIFIED MILITARY SERVICE. There shall be no refund of any contributions attributable to amounts that the county restores pursuant to Section 45-37-123.80(b) due to a member's qualified military service.
(9) TIMING OF REFUND PAYMENTS. In the event that a refund is to be paid, such payment shall be made as soon as administratively practical following the date upon which entitlement to the refund occurs.
(10) REFUND TO INCLUDE AMOUNTS TRANSFERRED FROM 457(b) PLAN. In the event that any member transfers amounts from a § 457(b), Internal Revenue Code, plan in accordance with Section 45-37-123.190(b), a refund shall include such transferred amounts, with interest if the member is vested.
Last modified: May 3, 2021