Have you left your job and need to know your options for your account balance?
Option 1: Keep your money at KRS
Your account will continue to earn 4% interest on the accumulated account balance. However, if you are no longer participating, your account would not be eligible for any Upside Sharing interest.
If you change jobs and your new employer is a participating agency with KRS, you and your new employer will contribute to your existing account and you will continue to accrue service credit.
If you are vested (60 months of service) when you leave your job, you may apply for retirement benefits when eligible and receive a lifetime monthly benefit.
Example if you kept your money at KRS
If John kept his money with KRS until retirement eligibility:
John began participating at age 30 and worked for 10 year in the KRS system with a $35,000 annual salary. Example does not show Upside Sharing Interest. Upside Sharing Interest does not accumulate for the full fiscal years of inactive status.
Service: 10 Years
Accumulated Account Balance: $68,110.31
Actuarial Factor 65 Years Old: 114.493584
Monthly Life Annuity Amount: $562/87
Option 2: Withdraw your account
Vested refund: Members who are vested are eligible for a refund of their accumulated account balance. The accumulated account balance is the total of all member contributions, Employer Pay Credits, and all interest credited to both amounts.
Non-vested refund: Members who are not vested are eligible for a refund of the member portion of the account balance. This includes the member contribution, the member interest and member upside sharing interest. A non-vested refund does not include the Employer Pay Credits, the interest on the pay credit balance or upside sharing interest.
Refunds from your KRS account may be paid directly to you or can be rolled over to another qualified retirement plan. If you elect to receive a direct payment, KRS is required to withhold 20% for federal income taxes. The amount withheld is not a penalty tax and will apply toward your federal tax liability for the year in which the refund is issued. Additional taxes due to age or other factors may apply if you choose to receive a direct payment of your refund.
Option 3: Retire if you are eligible
Retirement eligibility is dependent upon your age and years of service.
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