Leaving Employment
& Withdrawals
Moving to a non-KPERS role? Here are some things to consider before you start your new job.
When You Leave KPERS Before Retirement
If you're moving to an employer that doesn't offer KPERS benefits, you have some decisions to make.
Let's help you cross a few off your to-do list.
- Are you vested?
- Do you want to keep your life insurance?
- Do we have your contact info?
- Are you thinking about withdrawing?
- Are you a correctional officer?
Are You Vested?
If your answer is yes, you're guaranteed a lifetime retirement benefit! So you probably don't want to withdraw. Vesting is different for different types of members. Remember, you vest with:
- KPERS 1, KPERS 2, KPERS 3: 5 years of service
- KP&F: 15 years for Tier II, 20 years for Tier I
- Judges: Immediately
If You're Vested
You may choose to withdraw. But if you leave your money with KPERS, you're guaranteed a lifetime monthly benefit when you're eligible to retire. Your account will continue to earn interest.
If You're Not Vested
You'll need to withdraw your money within 5 years of ending employment. Your account earns interest for 5 years (2 years for KPERS 3 members).
There's a 31-day waiting period after you end employment before you can withdraw. When it's time, submit the withdrawal form and we'll send your refund within 4-6 weeks. The form tells you about your options on how to receive your money.
If You're Not Vested
You'll need to withdraw your money within 5 years of ending employment. Your account earns interest for 5 years (2 years for KPERS 3 members).
There's a 31-day waiting period after you end employment before you can withdraw. When it's time, submit the withdrawal form and we'll send your refund within 4-6 weeks. The form tells you about your options on how to receive your money.
What You Need to Do Next
Do you want to keep your life insurance?
Life insurance ends when you leave employment. But, you can take it with you. If you don't want to keep your insurance. there's nothing you need to do.
You have 60 days after you end employment to submit your form.
Questions? Talk with your employer or The Standard (toll-free 1-844-289-2306 or [email protected]).
Note: KP&F members do not have basic life insurance coverage. KPERS members moving to a Board of Regents position keep their life insurance coverage.
Submit contact info online or by paper
While you're working, we connect with you through your employer. But when you leave employment, we need to go to you. Do yourself (and us) a favor... give us your contact info. Believe it or not. we probably don't have it. We'll send you things like letters about your membership and your annual statement.
Should you Withdraw?
Often, your vested benefit is more valuable than the amount of your actual account balance, especially if you have a lot of service. Keep your money in KPERS and apply for retirement when you become eligible. Your account will continue to earn interest in the meantime, and you can withdraw any time if you change your mind.
If You Said Yes
If yes, submit a withdrawal form after 31 days
Submit your form after 31 days. This form tells you about your options on how to receive your money. Hint... a rollover is probably your best bet to continue saving efforts, keep from paying taxes right away and give your money time to grow.
You can expect your refund within 4-6 weeks.
Important!
If you withdraw, you're giving up all Retirement System rights benefits and service. Employer contributions made on your behalf stay with Retirement System.
Sometimes You Can't Withdraw
If any of these situations apply to you, your employer can best explain your options.
- Leave of absence
- Military Service
- Move to a non-covered position at KPERS employer
A Note for Correctional Officers
When you leave employment, you become a regular inactive member. You'll no longer have correctional officer retirement eligibility. Regular KPERS age and service requirements will apply when you retire.