A. A member who terminates service before normal retirement date, other than by death or disability shall, upon application filed with the State Board, be refunded from the Fund an amount equal to the accumulated contributions the member has made to the Fund, but excluding any interest or any amount contributed by the municipality or state. If a member withdraws the member's accumulated contributions, such member shall not have any recourse against the System for any type of additional benefits including, but not limited to, disability benefits. If a member has completed ten (10) years of credited service at the date of termination, the member may elect a vested benefit in lieu of receiving the member's accumulated contributions.

If the member who has completed ten (10) or more years of credited service elects the vested benefit, the member shall be entitled to a monthly retirement annuity commencing on the date the member reaches fifty (50) years of age or the date the member would have had twenty (20) years of credited service had the member's employment continued uninterrupted, whichever is later. The annual amount of such retirement annuity shall be equal to two and one-half percent (2 1/2%) of the annualized final average salary multiplied by the number of years of credited service.

If a terminated member has elected a vested benefit and subsequently returns to work as a police officer of a participating municipality, their vested benefit will be set aside and prior credited service will be reinstated.

B. If a member who terminates employment and elects a vested benefit dies prior to being eligible to receive benefits, the member's beneficiary shall be entitled to the member's normal monthly accrued retirement benefits on the date the deceased member would have been eligible to receive the benefit.

C. Whenever a member has terminated or hereafter terminates covered employment and has withdrawn or hereafter withdraws the member's accumulated contributions and has rejoined or hereafter rejoins the System, the member, upon proper application and approval by the Board, may pay to the System the sum of the accumulated contributions the member has withdrawn or hereafter withdraws plus ten percent (10%) annual interest from the date of withdrawal and shall receive the same benefits as if the member had never withdrawn the contributions. A lump-sum payment for repayment of any amounts received because of a member's prior termination may be repaid by trustee-to-trustee transfers of non-Roth funds from a Section 403(b) annuity, an eligible Section 457(b) plan, and/or a Section 401(a) qualified plan. Those members who at the time of termination of employment could not withdraw any of their accumulated contributions shall receive credited service for the time employed as an officer prior to any such termination upon proper application and approval by the Board. To receive credit for such service, all required contributions and interest shall be paid within ninety (90) days of Board approval of the application. The provisions of this subsection shall not apply to any member who is receiving benefits from the System as of July 1, 1987.

D. If an active member dies and does not leave a beneficiary, the accumulated contributions made to the System by the member shall be paid to the estate of the member.

Added by Laws 1980, c. 356, § 16, eff. Jan. 1, 1981. Amended by Laws 1985, c. 221, § 5, emerg. eff. July 8, 1985; Laws 1987, c. 236, § 154, emerg. eff. July 20, 1987; Laws 1990, c. 340, § 8, eff. July 1, 1990; Laws 1991, c. 335, § 4, emerg. eff. June 15, 1991; Laws 1993, c. 352, § 2, eff. July 1, 1993; Laws 1994, c. 2, § 5, emerg. eff. March 2, 1994; Laws 1995, c. 173, § 3, eff. July 1, 1995; Laws 2003, c. 137, § 2, emerg. eff. April 25, 2003; Laws 2004, c. 551, § 3, emerg. eff. June 9, 2004; Laws 2014, c. 44, § 2, emerg. eff. April 15, 2014; Laws 2016, c. 346, § 2, eff. July 1, 2016.

NOTE: Laws 1990, c. 143, § 4 repealed by Laws 1991, c. 335, § 37, emerg. eff. June 15, 1991. Laws 1993, c. 126, § 6 repealed by Laws 1994, c. 2, § 34, emerg. eff. March 2, 1994.