Leaving WRS Employment Before Retirement Age (Separation)
If you leave WRS employment before you reach retirement
age, you will have two options:
Option 1 - You may leave all of your contributions
in the WRS. Individuals who choose this option are considered inactive
members of the WRS, and all of their contributions continue to earn
interest. When you reach minimum retirement age, you will be eligible
for a retirement benefit if
you are vested. Your retirement
benefit will be based on:
- employee required contributions;
- employer matching contributions;
- any voluntary additional contributions:
- earned interest.
Option 2- You may choose to take a separation
benefit. A separation benefit is a one-time, lump sum payment of:
- employee required contributions;
- any voluntary additional contributions:
- earned interest.
You should carefully consider the consequences of taking a separation
benefit. If you take a separation benefit:
- You will forfeit the matching employer contributions in your
account and all benefit rights associated with your employment
as described in Separation
Benefits (ET-3101).
- You will incur significant federal and state tax liabilities
on your separation benefit if you do not roll it over into another
qualified retirement plan or Individual Retirement Account (IRA).
- A separation benefit completely closes your account. This means
that if you later become employed by a WRS employer, your account
starts over.
Please read the Department of Employee Trust Fund's Separation
Benefits (ET-3101) brochure for more detailed information before
choosing an option.
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