REFUNDS. . .

A member may apply for and receive a refund of his or her accumulated contributions, which includes any applicable interest, should he or she leave the employ of a LAGERS member subdivision prior to the time he or she is eligible to receive a monthly benefit (his early retirement age). Once an employee is eligible to receive a monthly allowance, the state law no longer allows for a refund, only the monthly benefit.

Due to the reporting system used by LAGERS member subdivisions, it normally requires between 60 and 90 days to process a request for refund. Checks are computer generated only on the first of a month. Refunds for terminated members cannot be processed until the employer report showing no wages paid to the member is received by the LAGERS office (to be certain all contributions have been reported). If a member is planning to return to work for a LAGERS member subdivision, he or she can elect to leave these contributions in the system, thereby retaining the service credit he had accrued.

Vested members leaving the LAGERS system who have less than 10 years service credit and are more than 10 years from normal retirement age may receive a lump sum payment. Any lump sum payment will result in forfeiture of a future monthly benefit at retirement.

Local governments participating in LAGERS are permitted, if the governing body elects, to grant refunds of members' contributions after two years of participation in the system under the non-contributory option. This refund does not result in a forfeiture of credited service with the system.

A refund payment, as well as monthly benefits, is not subject to garnishment, execution or bankruptcy proceedings except in the case of embezzlement, fraud, and enforcement of child support orders.

REDEPOSITS. . .

When a member chooses to take a refund of his or her accumulated contributions, he or she forfeits the credited service standing to his account with the system for which he or she was required to make contributions. If he or she is reemployed in a position covered by the system within ten years from the time his or her membership last terminated, he or she has the option to repay to the system the amount he or she was refunded, plus any regular interest thereon, and reinstate the service he or she had previously forfeited. If the member elects to reinstate after becoming reemployed, contributions should begin immediately upon hire.