Leaving State Employment

Vested vs. Non-Vested Status

• Vested Members (5+ years of service):
  • Eligible for a future retirement benefit.
  • 2011 Tier members may leave contributions with MPERS to draw a pension later.
  • Will receive correspondence from MPERS with benefit estimates and retirement eligibility.
• Non-Vested Members (less than 5 years):
  • Not eligible for a future retirement benefit.
  • Service is forfeited unless reinstated upon reemployment.

Refund of Contributions – 2011 Tier Members

If you are a 2011 Tier member, you contribute 4% of your pay toward retirement. You may request a refund of these contributions if you leave employment, but:

• You will forfeit all service credit and future benefits for that period.
• Refunds are not automatic and require a formal request.
• Refunds are issued no sooner than 90 days after termination.
• Spousal consent is required if you are married.
• Rollover options are available to defer taxes and avoid penalties.

Ineligible for Refunds: Members eligible for normal retirement, on disability, with a DBO on file, or vested-former members eligible for retirement.

Returning to State Employment

• Vested Members: Prior service is reinstated immediately upon reemployment in a benefit-eligible position.
• Non-Vested Members: Must work one continuous year to restore forfeited service.
• 2011 Tier Members who took a refund must:
  • Work for one year in a benefit-eligible position.
  • Repay the refund plus interest to restore service.

Interest on Contributions

• Vested members continue to earn interest on their contributions annually (credited June 30).
• Non-vested members do not earn interest after termination.
• See How Interest is Calculated on Contributions for more information.

Retirement Notifications

• Early Retirement: MPERS will notify you ~90 days before eligibility.
• Normal Retirement: MPERS will send estimates and forms ~90 days before eligibility.

Survivor Benefits

If you are vested and pass away before retirement:

• Your spouse or dependent children may be eligible for survivor benefits.
• 2011 Tier survivors begin receiving benefits at the member’s normal retirement eligibility date.

Work-Related Felonies

Conviction of certain work-related felonies after August 28, 2014, may disqualify you from receiving retirement benefits. Exceptions apply if you were vested before that date.

Frequently Asked Questions

Do I need to contact MPERS when I leave?
No. Your employer will notify MPERS. If you are vested or have employee contributions, MPERS will send you correspondence within 45 days of your termination, explaining your options regarding future benefits or a contribution refund.

Can I transfer service to/from MOSERS?
Yes. MPERS and MOSERS have a reciprocal agreement. Contact the system you’re transferring to for details.

Can I “grow” into Rule of 80 or 90?
Only Closed Plan members can grow into Rule of 80. Year 2000 and 2011 Tier members must be actively employed to accrue service and age simultaneously.

What happens to unused sick leave?

• Closed Plan: Must be eligible for retirement at termination to receive credit.
• Year 2000 Plan: Must be vested.
• 2011 Tier: Must retire directly from active employment or after reaching retirement eligibility.

For more information, see the Leaving State Employment brochure.