Withdrawing Contributions
KPERS Members Who Cannot Withdraw
FORMS
Application for Withdrawal of Contributions/Related Forms and Instructions
Important Tax Information Booklet
(PDF, 164KB)
Withdrawal Eligibility
A member is eligible to withdraw his or her Retirement System contributions plus interest 31 days after his or her last day on the employer’s payroll, provided he or she has not returned to any employment with any participating employer. When withdrawing, members forfeit all Retirement System rights, benefits and service credit.
Internal Revenue Code (IRC) requires a "distributable event" before the Retirement System can make a distribution to a member. A distributable event:
- retirement
- death
- separation from service
Specific rules apply to the situations involving a member’s separation from service.
In the following situations, members are not allowed to withdraw their contributions.
A member:
- transfers to an uncovered position because of reduced hours with the same employer
- transfers from a KPERS position to a KP&F or Judges’ Retirement System position (or vice versa) with the same employer
- is re-classified by the employer to a position that is covered by another plan
- who is a state employee covered by KPERS transfers to a Board of Regents institution (all state agencies, including Regents institutions, are a single employer)
- employed by a Board of Regents institution transfers from one Regents institution to another
- employed by a Board of Regents institution transfers from classified to unclassified service (i.e. from the KPERS plan to the Regents plan);
- ended employment less than 31 days ago
The IRC does allow members to withdraw when they change employers and change retirement systems. For example, a member worked for the city and was a police officer with KP&F. The member left his job as a police officer and went to work in a school district as a teacher with KPERS. This member would be allowed to withdraw his contributions and interest because the member changed employers and changed retirement systems.
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KPERS Members Who Cannot Withdraw
Because some members are not allowed to withdraw from KPERS, State law was amended in 2000. The legislation provides vesting in KPERS with less than ten years of service for certain members who transfer to a different retirement plan or who become ineligible for participation in KPERS because of reduced hours on their job. This applies to all members of KPERS when a member moves to a non-covered KPERS covered position but remains employed by the same employer.
Non-Covered Position Member is vested with as little as one quarter to nine years and one quarter. Member will continue to earn interest so long as the member remains with the same employer. If the member later transfers to another employer in a covered position, the ten year vesting requirement is reinstated. If the member goes to another employer in a non-covered position the member would be able to withdraw after 30 days and must withdraw within five years. If a member leaves employment after reaching an early or normal retirement age and meets eligibility for retirement, they are eligible for a retirement benefit. Retirement benefit calculations will be subject to all early retirement reductions and spousal options. |
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Covered Position Member is vested with nine years and two quarters of service credit (9.50). Member will continue to earn interest. Vesting will continue if member transfers from one covered position with one employer to another covered position with another employer. If member leaves employment after reaching an early or normal retirement age, he or she is eligible for a retirement benefit. Retirement benefit calculations will be subject to all early retirement reductions and spousal options. |
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Special Notice for School Members
Any teacher who substantially completes his or her contractual obligations and then resigns must be reported to the Retirement System through the end of the contract year. The Continuing Contract Law specifies the period from September 1 through August 31. Therefore, teachers will need to wait until October 1 to apply to withdraw. Administrators may apply to withdraw 30 days after the end-date of their last contract.
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Withdrawal Procedures
Member submits an Application for Withdrawal of Contributions (KPERS-13 form). The member must wait 31 full days after he or she has ended employment to file the form.
Timeline:
- The last day on payroll with a participating employer is the termination date.
- The first day after the termination date becomes day one, the second day becomes day two, etc.
- On day 31, the member may apply to withdraw as long as:
1. the member is not now in covered employment under the same plan, and
2. the member is not in any position with the same employer.
The Retirement System takes approximately four weeks to process the application
once we receive it. If the withdrawing member is vested, spousal consent
is required before withdrawal, or the withdrawal will not be paid
for
90 days.
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Payment Methods
There are two ways a member can receive a Retirement System payment:
- Direct rollover
- Paid to member