Leaving the Wyoming Retirement System: refund now, or pension later?

Short answer: with 48 months of service you're vested, and you can leave your money with WRS for a monthly pension later. Or you can take a refund of your own contributions plus interest, which ends your membership for good. Coming back later? A refund can change your tier, and a redeposit can restore the service (see buying service). For rollovers, see taxes. Estimate the pension you'd keep.

Your account

WRS keeps an account of your required employee contributions plus interest (not employer contributions). For non-vested members hired on or after July 1, 2018 the refundable balance is only the contributions taken from your pay (employer-paid employee contributions excluded); once vested, or for death benefits, it is the whole required employee contribution plus interest. Interest is set by the WRS Board. Non-vested accounts earn no interest while you are not employed by a participating employer. No loans; no garnishment until a refund or benefit is paid. Handbook p. 6, Your Pension Account and Account Management and Information; p. 13, Non-Vested Accounts

Choice 1: leave your money with WRS

Vested after 48 months (4 years). A vested member who leaves without a refund can draw a benefit at the ages in W.S. 9-3-415(a), (b) or (k). That's 50 or 60 in Tier 1, 55 or 65 in Tier 2, or the Rule of 85. Handbook p. 9, Months of Service, and p. 10, Vesting Requirements; W.S. 9-3-415(a), 9-3-416; W.S. 9-3-416; Handbook p. 13, Option 1: Leave Your Funds with WRS

Choice 2: take a refund or rollover

When you leave you can take a refund or roll over your account (your required contributions plus interest; the employer's share stays in the plan). A refund ends your membership: you forfeit service credit and, if vested, your right to a monthly benefit. It is final. If your balance is at least $1,000 you may leave it on deposit instead. No refund while employed by a participating employer. Handbook pp. 13-14, Leaving Employment Before Retirement Age; W.S. 9-3-424(a)-(b)

If you were hired on or after July 1, 2018 and aren't vested, your refund is only what came out of your own pay, plus interest. Handbook p. 6, Your Pension Account and Account Management and Information; p. 13, Non-Vested Accounts

Coming back: redeposits

If you took a refund and return to a WRS employer, you can redeposit to restore the forfeited service: wait two years after re-employment, then pay a single lump sum (set by WRS) within ten years of re-employment. Pre-tax rollovers or personal funds can be used. A redeposit made while in Tier 2 does not move you back to Tier 1. Handbook pp. 12-13, Redeposits and Important Tier 2 Rule; W.S. 9-3-424(a)

A refund can also change your tier if you come back. Which tier am I?

From the sources

• If you leave before retirement, you can take a refund or rollover of your contributions plus interest. The employer's share stays with WRS. A refund ends your membership and, if you were vested, gives up your monthly pension. It can't be undone.Handbook pp. 13-14, Option 2: Take a Refund or Rollover; W.S. 9-3-424(a)
• If your balance is at least $1,000 you can leave it with WRS. Vested accounts keep earning interest and you can start a pension at retirement age. Accounts that aren't vested stop earning interest.Handbook p. 13, Option 1: Leave Your Funds with WRS; W.S. 9-3-402(a)(i)(C)
• If you were hired on or after July 1, 2018 and aren't vested, your refund includes only the contributions taken from your own pay, plus interest, not any employee share your employer paid for you.Handbook p. 6, Your Pension Account; W.S. 9-3-402(a)(i)(B)
• If you come back after a refund, you can redeposit to restore that service: wait two years after you return, then pay a lump sum WRS calculates within ten years of returning.Handbook p. 12, Redeposits; W.S. 9-3-424(a)

Questions

Run your own numbers →