7.1439 Refund of contributions of separated employees—Return to employment.

Cite as [A.S.C.A. § 7.1439 ]

(a) Any member whose employment is terminated for any reason other than retirement is entitled to the return of all contributions he has made plus regular interest. Refund is made upon application by the member on a form provided by the board.

(b) Acceptance of this refund terminates membership in the fund and causes forfeiture of any further benefits.

(c) A member whose employment is terminated for any reason before he is eligible for vested retirement may leave his accumulated contributions in the fund, and they shall continue to earn regular interest. After 5 years the board may cause a member’s accumulated contributions to be forfeited if they total less than $25.00.

(d) A member whose employment is terminated for any reason after he is eligible for vested retirement may leave his accumulated contributions in the fund in order to be eligible for vested retirement benefits.

(e) Should a member in an inactive status return to government employment, he shall resume active fund membership with full credit for service previously rendered.

(f) A former member reentering government employment after having withdrawn his accumulated contributions (thereby terminating membership in the fund) must redeposit the amount of his previous refund with interest from the date of payment in order to obtain credit for such service.

(g) The withdrawal privilege granted by this section applies only to members whose employment has been terminated.

History: 1971, PL 12-29 § 11; 1981, PL 17-28 § 6;amd 1985, PL 19-15 § 1;amd 1986, PL 19-37 § 13; amd 1987, PL 20-13 § 2.

Amendment 1985 Subsection (c): deleted “is not required to withdraw his accumulated contributions immediately upon termination of employment. He” and added “whose employment is terminated for any reason before he is eligible for vested retirement”; replaced the numeral “4’ with the word “four”.

Subsection (d): added.

Subsection (e): relettered from former subsection (d). Subsection (f): relettered from former subsection (e). Subsection (g): relettered from former subsection (f).

1986 Subsection (c): added "regular” before “interest”.

1987 Subsection (c): deleted “for 4 calendar years following his termination of employment”, and “At the end of this period he must accept the refund”: added “After 5 years the board may cause a member’s accumulated contributions to be forfeited if they total less than $25.00”.