Refund Information

If you terminate your employment with a New Mexico Educational Retirement Board (NMERB)-covered entity prior to retirement, you are entitled to request a withdrawal or rollover of your member contributions. If you opt to withdraw or rollover your member contributions, you must take out the entire amount and you will no longer have service credit on account with NMERB. For account balance, you can log into your ERB account and click on Statement of Account. You can also contact NMERB, email to


To refund or rollover your contributions, complete the Request for Refund and/or Rollover form. If you are requesting your funds within 90 days of termination, your employer must certify that you are no longer working. Employer contributions are not refundable.


The lump sum and/or rollover amount of total member contributions include interest. The interest rate is based on the five-year Treasury bill as of March 31 of each year. The current interest rate, as of 7/1/17, is 1.93%. The NMERB does not pay interest on contributions paid into the NMERB Fund prior to July 1, 1971. Refunded NMERB contributions may be directly rolled over into an IRA or other qualified plan (you must ask your provider if it will receive this type of funds) without penalty. The NMERB is required by statute to withhold 20% of the total distribution and forward it to the IRS as a withholding. The IRS may also have an additional early withdrawal penalty of 10% if you are under age 59.5. You may want to consult with your tax advisor before taking a refund or transferring it to another qualified retirement plan. The NMERB cannot offer tax advice and is not liable for the tax effects of a refund or rollover.


If a member dies prior to retirement, contributions are refunded to his or her beneficiary with interest. If your beneficiary is under the age of 18, payment will not be made until the minor has reached age 18 or until the court appoints a guardian of the minor's estate.


If you have taken a refund but wish to reinstate credit for your contributions to the Defined Benefit Plan, you may pay the New Mexico Educational Retirement Board (NMERB) the withdrawn amount plus interest for the period during which the funds were withdrawn. If you received a refund of your contributions and have no service credit as of July 1, 2010, and decide you want to reinstate credit for your contributions to the Defined Benefit Plan, you will be subject to the new retirement eligibility rules. You may not take a refund if you have already applied for retirement and have completed your final retirement documents.


For more information please see the ERB Member Handbook or email