Repayment of Refunded Contributions

 

Eligibility

If you previously worked within the Public School Employees Retirement System and withdrew your DB pension contributions to the plan when you terminated your employment, you forfeited all service for the calculation of your pension and insurance subsidy associated with those contributions. As an active (working) member, you can reinstate your forfeited service credit by repaying the contributions you withdrew. When you repay a refund, you must also pay interest charges from the date of the refund to the date of payment in full. 

Conditions

  • If you were separated from public school employment for five years (60 months) or less, you must earn at least one year of service after your return before you are eligible to repay the refund.
  • If you were separated from public school employment for more than five years (60 months), you must earn at least two years of service after your return before you are eligible to repay the refund.
  • No partial credit can be granted. The entire refunded amount plus applicable interest must be paid in full before you retire or leave public school service, or no credit can be granted. 
  • For additional conditions, go to Adding to Your Service Credit.

Cost

The full amount withdrawn, plus interest. Interest is charged for each year that has elapsed since you took the refund. We will calculate your cost for you upon receiving your request for a Member Billing Statement. (You will not be obligated to buy.)

Application

Click here to learn how to request a Member Billing Statement. Be sure to tell us that you need a Refund Repayment statement, and provide the years you worked and the date you took the refund. We will research your record and the Member Billing Statement will show you the amount you must repay to reinstate your service.