Understanding the 90-day waiting period for refunds
"Why is there a 90-day waiting period to refund contributions for non-retired members?"
The 90-day waiting period ensures that the member has not entered into active service again after terminating employment.
EXAMPLE: If a 9-month teacher terminates employment at the end of the school year, a refund application may be processed as long as the teacher has not become employed by another TRSL-covered employer before the next school year begins.
- If the teacher becomes employed in another TRSL-covered position prior to completion of the 90-day waiting period, then no refund is due to the member, as there can be no in-service distributions.
- Internal Revenue Service (IRS) regulations prohibit TRSL, as a qualified government plan, from making in-service distributions.
Please review Index 7.0 for more information regarding refunds.
