5+ Years of Service beyond Rule of 80 or Normal Retirement Age
If you are vested (60 months of service) and are beyond your Rule of 80 age or Normal Retirement Age, you are eligible at any time to begin receiving their monthly LAGERS benefit.
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 LAGERS covered employment 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. The member must have a minimum break in LAGERS covered service of one month to be eligible for a refund.
Taking a refund of accumulated contributions forfeits your LAGERS service credit.
It normally requires between 60 and 90 days to process a request for a refund. Checks are generated 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).
Refund payments, as well as monthly benefits, are not subject to garnishment, execution or bankruptcy proceedings except in the case of certain crimes.
Can I redeposit my accumulated contributions to reinstate previously forfeited service credit?
If a member takes a refund and later reemploys with a LAGERS employer within 10 years, he or she may redeposit those funds, plus any applicable interest, to reinstate that prior service credit.
Contact the LAGERS office if you are interested in reinstating service credit.
Vested members leaving the LAGERS system who have less than 10 years of service credit and are more than 10 years from normal retirement age may receive a lump sum payment. The amount of the member’s lump sum is calculated as the actuarial equivalent of the reserve value of member’s deferred monthly allowance. Any lump sum payment will result in forfeiture of a future monthly benefit at retirement. It will also result in the forfeiture of any service credit should the member ever reemploy within the LAGERS system.
If you have 5 or more years of credited service and leave LAGERS coverage before your early retirement age, you may be eligible for a deferred allowance. A deferred retirement means that you are vested with the LAGERS system, therefore guaranteed a monthly benefit, but are not yet age eligible to begin receiving it.
If you have a deferred allowance, you may apply for your LAGERS benefits at any time upon attainment of your earliest retirement age.
The temporary allowance payable under the LT-4(62), LT-5(62) and LT-8(62) or LT-4(65), LT-5(65), LT-8(65), LT-10(65), and LT14(65) do not apply to deferred allowances.