Refund Of Contributions - State Teachers' Retirement System - CA Education

Section § 23100

If you're leaving your job, you have the option to cash out your retirement savings. This includes any money you contributed to your retirement after June 30, 1935, any annuity deposit contributions you made, and anything left in your Defined Benefit Supplement account. Your savings will keep earning interest until the payout date, but be aware that your regular retirement savings might be reduced if you've already received some retirement or disability benefits.

(a) Upon termination of employment, a member may elect to be paid, pursuant to this part, each of the following:

(1) The member’s accumulated retirement contributions made after June 30, 1935.

(2) The member’s accumulated annuity deposit contributions.

(3) An amount equal to the balance of credits in the member’s Defined Benefit Supplement account.

(b) Accumulated retirement contributions and accumulated annuity deposit contributions shall include credited interest through the date of payment.

(c) Accumulated retirement contributions shall be reduced by the amount of retirement or disability benefits paid to a member pursuant to this part.

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(Amended by Stats. 2011, Ch. 703, Sec. 8. (SB 349) Effective January 1, 2012.)

Section § 23101

If you get a refund of your retirement contributions, you lose any benefits related to those contributions. To get those benefits back, you must repay the full refund amount plus interest. Also, any beneficiaries you chose will not be valid anymore after the refund.

(a) When a member’s accumulated retirement contributions are refunded, as provided in Section 23100, all rights to benefits pertaining to the service credit represented by those contributions under this part are forfeited. Those rights and benefits, based upon service performed prior to refund, shall not be restored until the member has redeposited the total of the refunded accumulated retirement contributions, and paid the regular interest thereon as provided in Chapter 19 (commencing with Section 23200).

(b) In addition to the rights and benefits described in subdivision (a), any beneficiary designation made by a member pursuant to Chapter 20 (commencing with Section 23300) and Chapter 28 (commencing with Section 24300) under this part shall be invalidated upon the refund of the member’s accumulated retirement contributions.

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(Amended by Stats. 2011, Ch. 703, Sec. 9. (SB 349) Effective January 1, 2012.)

Section § 23102

Before an employee can get a refund of their retirement contributions, their employer must confirm that their job with the company has ended. This confirmation needs to be in a specific format unless the job ended more than a year ago.

Prior to the system paying a refund of accumulated retirement contributions under this part, the employer shall certify that the member’s employment has been terminated in a format prescribed by the system unless the employment was terminated 12 months or more prior to the date the refund application is received by the system’s headquarters office.

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(Amended by Stats. 2019, Ch. 96, Sec. 15. (AB 644) Effective January 1, 2020.)

Section § 23103

If you are part of a retirement plan and you leave your job permanently without enough service time to retire, you can get a refund of your contributions. You can request this refund using the right form, or it might happen automatically if the board confirms your job is permanently over and you don’t qualify for retirement.

Refunds to a member shall be made upon request of the member on a properly executed form prescribed by the system, or may be made without a request if it is determined by the board that the member’s employment is permanently terminated and the member does not have enough credited service under the Defined Benefit Program to qualify for service retirement under this part.

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(Amended by Stats. 2011, Ch. 703, Sec. 10. (SB 349) Effective January 1, 2012.)

Section § 23104

This section talks about how a member can get their retirement contributions back if they leave their job. There are a few ways this can happen: They can receive a check or have the money transferred to their bank account. Alternatively, they can choose to transfer the money to another retirement plan. If they change their mind, they have 30 days to return the funds and rejoin the retirement program with full benefits. However, there are specific rules about how notices and returns are handled, detailed in a separate section.

(a) Deposit in the United States mail of an initial warrant drawn as directed by the member as a refund of contributions upon termination of employment, and addressed to the address directed by the member, constitutes a return of the member’s accumulated retirement contributions under this part. In lieu of an initial warrant, the system may initiate a disbursement by electronic funds transfer to a specific account at a financial institution as directed by the member as a refund of contributions upon termination of employment, which shall constitute a return of the member’s accumulated retirement contributions under this part.

(b) Except as provided in subdivision (e), if the member has elected on a form provided by the system to transfer all or a specified portion of the accumulated retirement contributions that are eligible for direct trustee-to-trustee transfer to the trustee of a qualified plan under Section 402 of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 402), deposit in the United States mail of a notice that the requested transfer has been made constitutes a return of the member’s accumulated retirement contributions under this part.

(c) Except as provided in subdivision (e), for refunds not involving direct trustee-to-trustee transfers, if the member returns the total gross distribution amount to the system’s headquarters office within 30 days from the mailing date, the refund shall be canceled and the person shall be restored as a member of the Defined Benefit Program with all the rights and privileges under this part restored.

(d) Except as provided in subdivision (e), for refunds involving direct trustee-to-trustee transfers, if the member returns the warrant drawn to the trustee of the qualified plan or the trustee returns the amount of the qualified refund and, if applicable, any additional amounts necessary to equal, but in no event to exceed, the total gross distribution amount to the system’s headquarters office within 30 days from the mailing date, the refund shall be canceled and the person shall be restored as a member of the Defined Benefit Program with all the rights and privileges under this part restored.

(e) The mode of notice described in subdivision (b) and the measurement of time within which the return of total gross distribution amounts described in subdivisions (c) and (d) shall be made are subject to Section 22337.

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(Amended by Stats. 2014, Ch. 755, Sec. 25. (SB 1220) Effective January 1, 2015.)

Section § 23106

If you stop getting credit for service in one retirement program because you're now getting it in another one that's funded by the U.S. or state government, you can get back the money you put into the first program during that time.

If a member ceases to be entitled to credit for service in the Defined Benefit Program because the member has become entitled to credit for that service in another retirement system supported wholly or in part by funds of the United States government, or any state government or political subdivision thereof, the member is entitled to a refund of the accumulated retirement contributions made during the period for which he or she is entitled to credit in the other retirement system.

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(Amended by Stats. 1998, Ch. 965, Sec. 128. Effective January 1, 1999.)

Section § 23107

If you're part of the Defined Benefit Program, you can get back the money you've put into the annuity deposit, even if you don't leave the program. You just need to fill out the right forms provided to you.

Any member of the Defined Benefit Program without terminating membership in the program and upon making application on forms provided by the system shall be paid a refund of the accumulated annuity deposit contributions under this part.

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(Amended by Stats. 1998, Ch. 965, Sec. 129. Effective January 1, 1999.)