The Effect of Vesting and Interest on Your Account Balance

Carefully consider whether it is to your advantage to elect a refund of your contributions and interest of your PSRS account. By electing a refund of your account balance, you forfeit all rights to future benefits.

If you leave PSRS-covered employment and you are not vested (you do not have five years of eligible credit), you can leave your funds with PSRS and retain your membership.  You will continue to earn interest on your account balance each June 30.  If you do not return to PSRS-covered service within the next five school years and earn at least one-tenth of a year of credit, your membership automatically terminates.  A terminated account no longer accrues interest.  You may receive a lump-sum refund of your account funds by completing the proper application form.

If you leave PSRS-covered employment and you are vested (have five or more years of eligible credit), you can leave your funds with PSRS and retain your membership.  You continue to earn interest on your account balance each June 30.  Upon reaching retirement eligibility, you can elect to receive a lifetime monthly retirement benefit.