Members who leave their job prior to retirement may be eligible to receive a refund of their annuity savings account. Members will receive a return of their accumulated total deductions plus accrued statutory interest provided they are not subject to pension forfeiture provisions due to a criminal conviction, or charged with misappropriation of funds.
Members who voluntarily terminate public service with at least ten years of creditable service will receive 100% of the regular interest that has accrued in their annuity savings account. Likewise, members who are involuntarily terminated will receive 100% of the regular interest that has accrued.
Members who have accrued less than ten years of creditable service will receive interest at the rate of 3% on their accumulated total deductions.
Please note that members who apply for a refund more than two years after the date of termination of service will receive only the interest accumulated during the two years immediately following termination of service.
Members may not request a refund if:
- they are already retired,
- they continue to be an active member of any Massachusetts contributory retirement system,
- they are on an official leave of absence,
- they are receiving workers’ compensation benefits
- they are seeking to be restored to their position, or
- they are accepting a position in the service of the Commonwealth or a political subdivision governed by G.L. c. 32.
Termination of membership
A refund of a member’s total accumulated deductions terminates a member’s rights in the retirement system. Members who later re-enter the retirement system will be considered new members and will be subject to any benefit changes in effect at the time of their re-employment.
A member with ten or more years of creditable service is vested and potentially eligible for a retirement allowance. By taking a withdrawal of their accumulated total deductions, they will lose any right to this retirement allowance.
Members who redeposit a refund and again become employed and active members must generally remain in active service for at least two consecutive years in order to retire.