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Repayment of Refunded Contributions

Repayment of Refunded Contributions

 

Eligibility

Service credit you earned during a previous period of state employment, but then canceled because you withdrew your contributions when you left, may be paid back to the retirement system to reinstate your service credit. When you repay a refund, you must also pay interest charges from the date of the refund to the date of repayment in full. As an active (working) State of Michigan employee, you can reinstate your canceled service credit by repaying the contributions you withdrew.

Conditions

  • If you have been separated for more than 15 years before returning to state employment, you must be a member for five years before you are eligible to repay the refund.
  • The entire refunded amount must be paid in full prior to your retirement or separation from state service. No partial credit can be granted.

Cost

The full amount withdrawn, plus interest. Interest is charged for each year that 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

Request a member billing statement as described under How to Purchase. 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.