Terminated employees with LESS than 5 years of service must choose between Options 1 through 3

Option 1

Elect a refund of your contributions and accumulated interest (Police System does not earn interest)

Refunds are subject to:  

           - 20% Federal income tax withholding
           - 4% VA State income tax withholding (For VA Residents only) AND a
           - 10% penalty* if under age 55 ERS (age 50 for most public safety** URS & PORS).

Contact Retirement Systems to obtain and complete the “Acknowledgement of Employment Termination” form. Your signature must be notarized. 

A refund will be processed within 60-90 days. The distribution will be made by direct deposit.

        *This information is provided based on Section 72(t) of the Internal Revenue Code. 
         Additionally, this information is provided only as general information and should
         not be considered as legal or tax advice. Please consult a tax professional before
         taking a distribution from your 401(a) Qualified Pension Plan. 
     **The definition of a “qualified public safety employee” is an employee of a state or 
        political subdivision of a state (e.g. a county) who provides police protection, 
        firefighting services, or emergency medical services for any area of the jurisdiction. 

Option 2  

Elect to roll over your contributions and accumulated interest (Police System does not earn interest) to a traditional Individual Retirement Account (IRA) or eligible employer plan.

             - Contact Retirement Systems to obtain and complete the “Acknowledgement of Employment 
               Termination” form. (Note: the financial institution or employer plan accepting the rollover
               must complete a portion of the form). Your signature must be notarized.

Transfer will be completed within 60-90 days. A manual check will be sent directly to the trustee institution; there is no direct deposit option.

Option 3

Elect not to receive a refund. 

              - Contact Retirement Systems to obtain and complete the “Acknowledgement of Employment
                Termination” form. If you choose  to leave your money in the retirement  system,
                it will continue to earn  interest at the rate of 5% for the first 5 years after termination
                (Employees’ and Uniformed Systems only). If you return to County employment in the 
                same system and your account balance is intact, you will re-enter the same Plan and
                begin accruing service towards retirement eligibility.

Option 4

Elect a Deferred Vested Retirement – only if you have 5 years or more of eligibility service. 
There are two types of Deferred Vested Retirement:

1. Normal – benefit will begin at age 65 (Age 55 for Police and Uniformed members)
2. Early – benefit to begin when eligibility plus age equals 75 (Reduced Benefit) (Early Deferred Vested benefit is only available to Employees’ System members)

                - Contact Retirement Systems to obtain and complete the “Acknowledgement of Employment 
                  Termination” form.
                - Approximately 6 months before you turn 65 (Employees’) or 55 (Police and Uniformed), 
                  contact Retirement Systems Membership Services to complete remaining forms.

General Information:

You must continue to keep us informed of your current address and phone number by a written and
signed request.

You may request a refund or roll over your account balance any time after terminating your employment,
even after completing an application for a deferred vested retirement – as long as your request is received
before your retirement benefit has commenced.

Remember, once you remove (refund, rollover) your contributions, no further retirement benefits are payable.

 

Monday – Friday: 8:00 am to 4:30 pm
Walk-in hours: 11:00am to 2:00pm - estimates are NOT given during walk-in hours
Limited services are available during walk-in hours
Phone: 703-279-8200

 

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