Refund of Contributions
PLEASE NOTE: A refund cancels ALL member service credit (contributory and noncontributory), ALL membership rights, and ALL beneficiary designations.
- Only member contributions are refundable and only upon termination of employment with an ATRS covered employer. Employer contributions are nonrefundable.
- The refundable balance is the member's contributions plus interest. However, interest is not paid on member contributions made in the year in which a refund is paid.
- You must submit a completed refund application:
- Signed by the member;
- Notarized; and
- Employer section completed by the former employer if you were employed in the current or previous fiscal year (July 1 – June 30).
- The requested refund will be processed within the next *thirty (30) working days. The refund will include all contributions and accumulated interest currently updated in your ATRS member contribution account. Any additional contributions not included in the original amount will be refunded as a second refund after the account has been completely audited and closed.
- Members have the following options for the distribution of the taxable amount of his or her refund:
- Rollover of all taxable amounts to an eligible tax deferred retirement account; or
- Rollover a portion of the taxable amount to an eligible tax deferred retirement account, with the remaining balance of the taxable amount paid to you after applicable federal and state taxes; or
- Receive a direct payment (check) to you of all contributions with interest after the required federal withholding (20%) and state withholding (5%) are deducted. (An additional early withdrawal penalty of 10% for members under age 59 ½ may be applicable by the IRS.)
- Refunds do not change a member's status from contributory to noncontributory
- If you become an active member of Teacher Retirement after receiving a refund of your contributions, you may request a cost estimate to repay the refund and reestablish your service credit years. However, the cost to repay the refund will be computed at actuarial cost value of the service, not the amount of contributions that you withdrew. It is very costly to reestablish this service credit.
- ATRS does not have any provisions that allow borrowing or loans from a member's account.
* A rollover to an eligible tax deferred retirement account will be made in only one (1) refund payment. Therefore, ATRS must audit and close all quarters in which the member has been employed with an ATRS covered employer prior to distributing the requested refund to the eligible tax deferred retirement account.
For more information see: Refunds FAQ
Contact ATRS at 501-682-1517, 1-800-666-2877, or
to request an
Application for Refund of Contributions.
Last Updated ( Tuesday, 13 August 2013 )