Iowa Code § 97B.53 - Termination of employment — refund options

Membership in the retirement system, and all rights to the benefits under the retirement system, 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 a refund of moneys in the member’s account as provided in this section. 1. Upon the termination of employment with the employer prior to retirement other than by death of a member, the member’s account, consisting of accumulated contributions by the member and, for a member who is vested on the date an application for a refund is filed, the member’s share of 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, 4, and 8. For the purpose of this subsection, the “member’s share of the accumulated employer contributions” is an amount equal to the accumulated employer contributions of the member 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 moneys in the member’s account as provided 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. A terminated, vested member has the right, prior to the commencement of the member’s retirement allowance, to receive a refund of moneys in the member’s account, 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 authorized by section 97B.52, subsections 1 and 2, shall be paid. 4. A member has not terminated employment for purposes of this section if the member commences other covered employment within thirty days after the date employment was terminated with a covered employer, or if the member begins covered employment prior to filing a request for a refund with the system. 5. Within sixty days after a member has been issued payment for a refund of moneys in the member’s account, the member may repay the moneys refunded, plus interest that would have accrued, as determined by the system, and receive credit for membership service for the period covered by the refund payment. 6. A member who does not withdraw moneys in the member’s account upon termination of employment may at any time request the return of the moneys in the member’s account, but if the member receives a return of moneys in the member’s account the member has waived all claims for any other benefits and membership rights from the fund. 7. If a member is involuntarily terminated from covered employment, has been issued payment for a refund, and is retroactively reinstated in covered employment as a remedy for an employment dispute, the member may receive credit for membership service for the period covered by the refund payment upon repayment to the system within ninety days after the date of the order or agreement requiring reinstatement of the amount of the refund plus interest that would have accrued, as determined by the system. 8. The system is under no obligation to maintain the member 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 system of the person’s entitlement to the refund. The system is under no obligation to maintain the member accounts of such persons after January 1, 1964. 9. Any member whose employment is terminated may elect to leave the moneys in the member’s member account in the retirement fund. 10. 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 system for a refund of the funds contributed to the system 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; 2000 Acts, ch 1077, §63; 2001 Acts, ch 68, §21, 24; 2002 Acts, ch 1135, §29; 2003 Acts, ch 145, §286; 2004 Acts, ch 1103, §47; 2015 Acts, ch 29, §13 Referred to in §97B.1A, 97B.39, 97B.42, 97B.49A, 97B.49H, 97B.50, 97B.70, 97B.80C