Your Ownership of Account Funds

You have the right to withdraw any of your own contributions (including your initial 3 percent) once you terminate state employment, though there could be tax liabilities and penalties if taken before you reach certain IRS-determined age requirements. 

Your ownership of the contributions made by the state is based on a vesting schedule. You are fully vested after four years of state employment. After two years you are 50 percent vested, therefore you could withdraw 50 percent of your state-contributed funds after you leave state employment. You are 75 percent vested after three years.

Throughout the 4-year vesting period the state contributes to your account, allowing you to manage the investments and track your progress toward retirement goals. All contributions and earnings are reflected on your statements, even though the state's contributions are not fully yours until you meet the vesting terms. If you leave state employment before you are fully vested at four years, all nonvested state contributions are permanently forfeited.