Leaving a Georgia teaching job: refund or pension at 60?

Taking a refund

If you leave TRS-covered employment you can apply for a refund of contributions and interest (lump sum; no partial withdrawals or loans). You can't get a refund after accepting other TRS-covered work, and summer break isn't termination. The taxable part is subject to federal and Georgia tax; TRS of Georgia withholds 20% federal unless rolled over; a 10% IRS penalty may apply under 59-1/2. Withdrawing gives up the service credit and accrued sick leave for those years. Member's Guide pp. 4-5, Termination: Withdrawing Your Funds

Staying vested

With at least 10 years of creditable service you have a vested right to a benefit at age 60, if you leave covered work and don't withdraw your contributions. A vested member who has left must apply; you may apply in the 6 months before age 60, and TRS of Georgia pays nothing for months before your application. Member's Guide p. 11, Vesting

Your account stays active if you contribute at least 1 year out of any 5 consecutive years (a break of up to 4 years). Out more than 4 consecutive years, the account becomes inactive: no more interest, and you can't buy service, repay withdrawn accounts, apply for disability retirement or leave a monthly death-in-service benefit. Member's Guide p. 11, Membership Status

What the guide says

• If you leave TRS-covered work you can take a refund of your contributions and interest. It's all-or-nothing: no partial withdrawals or loans.Member's Guide pp. 4-5, Termination: Withdrawing Your Funds
• TRS of Georgia withholds 20% for federal tax unless you roll it over, and the IRS may add a 10% penalty if you're under 59-1/2.Member's Guide p. 5, Termination: Withdrawing Your Funds
• With 10 or more years, you can leave your money in TRS of Georgia and claim a benefit at 60 instead. You must apply; TRS of Georgia won't pay for months before you apply.Member's Guide p. 11, Vesting
• Your account stays active if you contribute in at least 1 of every 5 years. After more than 4 years away it goes inactive and stops earning interest.Member's Guide p. 11, Membership Status
• TRS of Georgia credits interest each June 30, currently 4.5%.Member's Guide p. 5, Your Annual Membership Statement

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