If you are considering leaving LAGERS-covered employment before retirement age, you may have several options with your LAGERS benefit. Your options depend on your age and the amount of service credit you have earned.
Less Than Five Years of Service
If you have fewer than five years of service credit, regardless of your age, you have two options. You may take a refund of your accumulated contributions. Taking a refund will forfeit any future benefit you would have received based on this period of service.
Alternatively, you may leave your accumulated contributions in the system. If you plan to re-employ with a LAGERS employer within the next ten years, leaving your contributions in the system preserves your earned service credit for a future monthly benefit if you become vested.
More Than Five Years of Service and Under Early Retirement Age
If you are vested, meaning you have more than five years of service credit, and under early retirement age, you have additional options. You can wait to draw your monthly benefit until you reach early or normal retirement age, or you can take a refund of your contributions.
You may also be eligible to take a lump sum payment if you have fewer than 10 years of service and are more than 10 years from retirement age. Choosing a lump sum payment permanently forfeits any possible future monthly payments based on this period of service credit.
More Than Five Years of Service and Over Early Retirement Age
If you have more than five years of service credit and are over early retirement age but under normal retirement age, you may choose to wait to draw your monthly benefit at normal retirement age or elect early retirement.
Once you reach normal retirement age and are no longer working, there is no advantage to delaying your monthly benefit.
