Membership in the retirement system, and all rights to the benefits under the system, will cease upon a member's termination of employment with the employer prior to the member's retirement, other than by death, and upon receipt by the member of the member's accumulated contributions.
1. Upon the termination of employment with the employer prior to retirement other than by death of a member, the accumulated contributions by the member and, for a vested member, the accumulated employer contributions for the vested member at the date of the termination may be paid to the member upon application, except as provided in subsections 2, 5, and 6. For the purpose of this subsection, the "accumulated employer contributions" is an amount equal to the total obtained as of any date, by accumulating each individual contribution by the employer for the member with interest plus interest dividends as provided in section 97B.70, for all completed calendar years and for any completed calendar year for which the interest dividend has not been declared and for completed months of partially completed calendar years, compounded as provided in section 97B.70 multiplied by a fraction of years of service for that member as defined in section 97B.49A, 97B.49B, or 97B.49C.
2. If a vested member's employment is terminated prior to the member's retirement, other than by death, the member may receive a monthly retirement allowance commencing on the first day of the month in which the member attains the age of sixty- five years, if the member is then alive, or, if the member so elects in accordance with section 97B.47, commencing on the first day of the month in which the member attains the age of fifty-five or any month thereafter prior to the date the member attains the age of sixty-five years, and continuing on the first day of each month thereafter during the member's lifetime, provided the member does not receive prior to the date the member's retirement allowance is to commence a refund of accumulated contributions under any of the provisions of this chapter. The amount of each such monthly retirement allowance shall be determined as provided in either sections 97B.49A through 97B.49G, or in section 97B.50, whichever is applicable.
3. The accumulated contributions account of a terminated, vested member shall be credited with interest, including interest dividends, in the manner provided in section 97B.70.
4. A terminated, vested member has the right, prior to the commencement of the member's retirement allowance, to receive a refund of the member's accumulated contributions, and in the event of the death of the member prior to the commencement of the member's retirement allowance and prior to the receipt of any such refund the benefits of subsection 1 of section 97B.52 shall be paid.
5. A member has not terminated employment if the member accepts other covered employment within thirty days.
5A. Within sixty days after a member has been issued payment for a refund of the member's accumulated contributions, the member may repay the accumulated contributions plus interest that would have accrued, as determined by the department, and receive credit for membership service for the period covered by the refund payment.
5B. A member who does not withdraw the member's accumulated contributions upon termination of employment may at any time request the return of the member's accumulated contributions, but if the member receives a return of contributions the member has waived all claims for any other benefits and membership rights from the fund.
6. The system is under no obligation to maintain the accumulated contribution account of a member who terminates covered employment prior to December 31, 1998, if the member was not vested at the time of termination. A person who made contributions to the abolished system, who is entitled to a refund in accordance with the provisions of this chapter, and who has not claimed and received such a refund prior to January 1, 1964, shall, if the person makes a claim for refund after January 1, 1964, be required to submit proof satisfactory to the department of the person's entitlement to the refund. The department is under no obligation to maintain the contribution accounts of such persons after January 1, 1964.
7. Any member whose employment is terminated may elect to leave the member's accumulated contributions in the retirement fund.
8. If an employee hired to fill a permanent position terminates the employee's employment within six months from the date of employment, the employer may file a claim with the department for a refund of the funds contributed to the department by the employer for the employee.
[C46, 50, § 97.6, 97.13, 97.45; C54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 97B.53; 82 Acts, ch 1261, § 24]
84 Acts, ch 1285, § 16; 92 Acts, ch 1201, § 56; 94 Acts, ch 1183, § 45-47, 97; 96 Acts, ch 1187, §49; 98 Acts, ch 1183, §57-60, 78; 98 Acts, ch 1183, §57, 78
Referred to in § 97B.1A, 97B.39, 97B.42, 97B.49A, 97B.49H, 97B.70
1998 amendment to subsection 1 effective July 1, 1999; 98 Acts, ch 1183, §78
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