Upon termination of employment, if you are not vested in the system or if you are vested but elect not to receive a deferred retirement benefit from ERSRI, you can elect to take a refund of your pension contributions without interest. You can roll this money over into a qualified retirement account or take the refund as a direct cash payment.
If taken in the form of a direct cash payment to you (in lieu of a roll over), a refund of your contributions is subject to state and federal income taxes, and ERSRI must withhold 20% in federal tax from the taxable portion of your refund. In addition, if you receive a lump sum distribution of your pre-tax member contribution account from the System before the minimum age for federal and state requirements, and you do not roll it over into another qualified plan or an Individual Retirement Account (IRA), you may also have to pay a tax penalty for early withdrawal.
When considering a refund, ERSRI strongly encourages you to seek advice from a qualified tax professional. ERSRI cannot provide you with such advice.
To initiate a refund of your ERSRI contributions, use the link below to download and submit an Application for Termination Packet form or call the Member Service Center at (401) 462-7600 and request a Termination Packet.
