Refunds and Rollovers

If you terminate your employment with an ERB employer prior to retirement, you are entitled to request a withdrawal of your member contributions. If you opt to withdraw your member contributions, you must withdraw the entire amount. The Request for Refund and/or Rollover form is available on the ERB website.

If you are requesting your funds within 90 days of termination, your employer must certify that you are no longer working. Employer
contributions based on your earnings are not refundable.

Members who choose to withdraw their contributions from the ERB plan receive a lump sum payment plus interest. The interest rate is based on the five year Treasury Note rate as of March 31 of each year. Check the ERB website at for the current rate. ERB does not pay interest on contributions paid in prior to July 1, 1971.

Refunded contributions may be directly rolled over into an IRA, or other qualified plan, without penalty. If the refund is not ransferred directly to another qualified retirement plan, it is subject to federal income tax and a 10% penalty for early withdrawal. ERB is required to withhold 20% of the total payment, including interest, for income taxes. Consult with your tax advisor before requesting a refund or transferring contributions to another qualified retirement plan. ERB cannot offer tax advice and is not liable for the tax consequences of a refund or rollover.

If a member dies prior to retirement, contributions are refunded to his or her beneficiary with interest. If a retired member who opted not to elect survivor benefits (i.e., if the member chose Option A “Straight Life” Benefit) dies before his or her contributions have been paid out, the beneficiary will receive a refund for the remainder of his or her contributions at the interest rate established by ERB.If the 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reinstate credit for your contributions to the Defined Benefit Plan, you may pay the Educational Retirement Board the withdrawn amount plus interest for the period during which the funds were withdrawn. Check the ERB website for the current interest rate.

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. For a complete discussion of the new rules, please see “Retirement Eligibility: Age and Benefits”. You may not request a refund after the effective date of your retirement.