DID YOU KNOW? A refresher on refunds
When it comes to refunds and re-enrollments of refunded members, timing is key. Make sure you’re “in the know” by reviewing these commonly misunderstood topics:
Re-enrolling a member who has previously refunded contributions
When an individual refunds his or her member contributions, service credit is canceled. If the refunded member later becomes hired in a TRSL-covered position, you will need to determine the member’s eligibility.
- A refunded member hired in a part-time position (working 20 hours or less) is not eligible to contribute to TRSL, unless it is secondary employment (full-time with another TRSL-covered employer).
- When a member in refunded status is determined to be eligible for membership and is enrolled in TRSL again, EMIS looks at the refunded member's original enrollment date in TRSL to determine which plan the member will be re-enrolled under -- the Original Retirement Plan, the 2011 Retirement Plan, or the 2015 Retirement Plan.
Waiting periods for refunds
When a non-retired* member submits a refund application, state law requires the employer to wait 90 days from the date of resignation/termination before certifying the refund application. If during that time or prior to the member's refund being issued, the member becomes employed in another TRSL-covered position and begins contributing to TRSL again, their refund application will be null and void, and no in-service distribution can be made from the member's account.
- It is extremely important that employers do not delay processing an enrollment if they see that a member has submitted a refund application.
*There is no waiting period for a RTW retiree to refund their RTW contributions, but they must wait until the employer reports their final month’s earnings before a refund can be issued.