In general, refunds of employee account balances are available to former LAGERS members any time prior to the age that they are eligible to receive a monthly benefit. The employee must have a break in LAGERS covered service of at least one month to be eligible for a refund. Once the employee becomes eligible for a monthly benefit the refund is no longer payable. The age that the employee becomes eligible for a monthly benefit is his or her early retirement age (55 for general employees and age 50 for fire fighters and police officers).
Terminated employees in the following situations have the following options:
Situation 1: Less than 5 Years of Service upon Termination, Regardless of Age
Employee Options: Refund, Leave Employee Contributions in System
Situation 2: 5 - 9 Years of Service, More than 10 Years from Normal Retirement Age
Employee Options: Refund, Deferred Retirement or Lump Sum Payment
Situation 3: 5+ Years of Service, over Early Retirement Age under Normal Retirement Age
Employee Options: Early Retirement, Delay Monthly Payment to Normal Retirement
Situation 4: 5+ Years of Service and over Normal Retirement Age
Employee Options: Normal Retirement
Refunds Forfeit Service Credit
When an employee terminates employment and takes a refund he or she forfeits the credited service standing to his or her account with LAGERS.
Applying for a Refund of Employee Account Balance
For a former member to receive a refund, he or she must complete and forward to LAGERS an LRS-3, Application for Payments Due to a Former Member. Please see that this form is completed in its entirety, signed by both the terminated employee and someone representing the governing body of the subdivision and forwarded to LAGERS.
You may wish to remind the terminated employee that refunds cannot be paid before the expiration of 60 days from date of termination. It normally requires 60 to 90 days to receive a refund and checks are issued the first working day of the month only.
If an employee has more than one account with LAGERS, he or she must submit a request form for each account.
Reinstating Previously Forfeited Service Credit
If a former member who was refunded his or her employee contributions is reemployed in a position covered by LAGERS within ten years from the termination date, he or she can choose to repay the amount he was refunded, plus any applicable interest, and reinstate his or her forfeited service.