- If you leave PERSI employment, you can take a separation benefit: your own contributions plus interest, as a lump sum or rollover. Employer contributions are not refunded.Withdrawing Funds flyer (Nov. 2021); Member Handbook (2019), p. 38
- Taking a refund cancels all your service credit, including a vested right to a lifetime benefit. You must have left all PERSI employers.Withdrawing Funds flyer (Nov. 2021)
- PERSI withholds 20% for federal tax if the refund is paid to you. A 10% IRS penalty may apply before 59 1/2.Withdrawing Funds flyer (Nov. 2021); Member Handbook (2019), p. 39
- If you return to work for a PERSI employer, you can pay back a refund plus the interest it would have earned to restore your service.Member Handbook (2019), p. 40; Account Withdrawal and Buyback web page
A refund, in dollars
Our illustration: a $40,000 account paid to you at 45.
| Your contributions plus interest | $40,000 |
| Federal tax withheld (20%) | −$8,000 |
| Possible IRS penalty (10%, under 59.5) | −$4,000 |
| Could be left | $28,000 |
Withholding is a prepayment, not the final tax. A rollover to another retirement plan avoids both. Withdrawing Funds flyer (Nov. 2021); Member Handbook (2019), pp. 38-41; Account Withdrawal and Buyback web page
Or keep your pension
Vested after 60 months, you can leave your money in and take a pension later. With 120 months on a $4,500 average monthly salary, that's $4,500 × 2% × 120 ÷ 12 = $900.00 a month from 65, for life (our engine's arithmetic). Member Handbook (2019), p. 22; PERSI ACFR 2024 Summary of Plan Provisions, p. 8; PERSI FY2025 Financial Statements Note 1, p. 19 (2.0% for all members except police and fire)
- You are vested after 60 months (5 years) of credited service. Vested members can get a lifetime monthly benefit at retirement.Member Handbook (2019), p. 10; Withdrawing Funds flyer (Nov. 2021)
- You earn one month of service for each calendar month you work 15 days or more in an eligible position, up to 12 months a year.Member Handbook (2019), p. 10; Credited Service flyer
Before you decide
- If you leave your money in PERSI, it keeps earning interest and keeps your service. If you return to PERSI work later, new service is added to what you already have.Withdrawing Funds flyer (Nov. 2021), Leaving Your Base Plan Account in PERSI
- With 60 months or more you're vested, and your pension may be worth more than your account balance, so PERSI suggests asking it for a benefit estimate before you take a refund.Withdrawing Funds flyer (Nov. 2021), Have You Already Earned a Lifetime Benefit?
- You count as having left only when all PERSI employment has ended. Part-time work, contract or leased work, or a leave of absence doesn't count. You apply with a Request for Separation Benefit form and a copy of a government photo ID.Withdrawing Funds flyer (Nov. 2021), Taking a Base Plan Separation Benefit
- Your Choice 401(k) account is separate: what you do with it doesn't affect your Base Plan service. You can leave it in PERSI if it holds at least $1,000; below $1,000 it is closed and paid out.Withdrawing Funds flyer (Nov. 2021), Choice 401(k) Plan
See also Buying service credit and Taxes.
Questions
Can I get my PERSI contributions back if I leave teaching?
Yes, once you've left every PERSI employer. You get your own contributions plus interest, not your employer's. Taking it cancels all your service.
Should I take a PERSI refund or leave my money in?
If you're vested (60 months), leaving it in keeps your right to a monthly pension for life, which may be worth much more than the refund. Ask PERSI for an estimate first.
Source: PERSI Member Handbook, Handbook revision July 2019, pp. 10, 38-41. Also: PERSI Withdrawing Funds flyer (Nov. 2021); PERSI withdrawal and buyback page; PERSI Credited Service flyer; Idaho Code § 59-1359 (as PERSI quotes it). Last reviewed .