Your contributions, no interest
- Cash, or a rollover to an IRA or 401(k)
- Federal tax withheld on cash, and maybe an IRS penalty under 59½
- About 4-6 weeks after you leave
- Your service is gone (you can buy it back if you return)
A pension at your eligibility age
- No reduction if you wait to your eligibility age
- Apply 6-12 months ahead; it never starts on its own
- Not paid back to an earlier date
If you come back, you can buy back refunded service; see buying service credit. A cash refund is taxable; see taxes. Your later pension date is on when can I retire?
Vesting
You are vested in the pension (able to collect it when you meet the retirement rules) with 5 years of contributory service, for members active on or after July 1, 2012 (it was 10 before). Your own contributions are always yours. In the defined contribution plan the employer's contributions vest after 3 years of contributory service. Handbook, p. 9, Vesting and Purchasing Service Credit; Handbook, p. 16, So, when will I be pension eligible?; R.I. Gen. Laws § 16-16-12(e)
Teachers' Survivors Benefit contributions
At retirement you can drop Teachers' Survivors Benefit coverage and get your TSB contributions back with interest. Handbook, p. 21, Do I have to maintain the TSB Plan when I retire?; R.I. Gen. Laws §§ 16-16-31, 16-16-32
Your defined contribution account
You can't take money out of the defined contribution plan until you leave your job; ask TIAA (800-897-1026). Handbook, p. 32, What are my refund or rollover options for my Defined Contribution Plan?; R.I. Gen. Laws §§ 36-10.3-7, 36-10.3-9
What the handbook says
- If you leave for any reason other than retirement, you can take your pension contributions as cash or roll them into an IRA or 401(k). You don't get the interest they earned, and you give up the service.Handbook, p. 32, Refund & Rollover of Contributions
- Cash refunds have federal tax withheld, may have an IRS penalty if you are under 59 1/2, and take about 4-6 weeks after you leave. You can't borrow from the account.Handbook, p. 32
- If you are vested and leave your money in, you can start a pension at your eligibility age. Leaving right at 5 years? Ask ERSRI to confirm in writing that you vested before you leave.Handbook, p. 33, Deferred Retirement, note 48
- Come back and work a year, and you can buy back refunded service by repaying the refund plus interest, within 3 years of rehire. It doesn't count against the 5-year purchase limit.Handbook, p. 11, Restoration of Service Credit
- Your defined contribution account (TIAA) can't be withdrawn until you leave your job.Handbook, p. 32
Questions
Can I get my ERSRI contributions back if I leave teaching?
Yes. If you leave for any reason other than retirement you can take your pension contributions as cash or roll them into an IRA or 401(k). You don't get the interest they earned, and you give up the service.
Should I take a refund or leave my money in?
If you have 5 or more years of contributory service, leaving it in keeps your right to a pension at your eligibility age. A refund ends that. Under 5 years, the refund is all you can get from the pension plan.
What happens to my defined contribution account?
It's separate, with TIAA. You can take it out only after you leave your job.
Source: ERSRI Membership and Retirement Handbook, 10th edition, June 2020 (with the 2024 Article 12 changes from the Treasurer's guide, July 1, 2024), pp. 9, 11, 16, 21, 32, 33. Also: Rhode Island General Laws. Last reviewed .