Refunds

If you leave state employment, you may withdraw your contributions in GARS or roll your taxable contributions over to another qualified plan or IRA.

If You Leave Your Contributions in GARS

• You must have four years of service under GARS to qualify for a pension.

• You may use service in other reciprocal systems to qualify for a pension under the Retirement Systems’ Reciprocal Act.

If You Have Your Contributions Refunded

• You will receive no interest on your contributions.

• You will forfeit all rights to GARS benefits for yourself and your beneficiaries.

When Refunds are Paid to You

• You pay no state income tax.

• You will pay federal tax on most benefits. Specific information will be furnished when benefits are payable.

The best tax treatment for you depends on your individual financial situation. GARS advises all members to check with a qualified tax consultant or financial planner before receiving benefits or refunds.

Contributions made before January 1, 1982 were taxed when you received them. Your contributions after January 1, 1982, were not included in your gross income and therefore are not immediately taxable. However, when you begin receiving benefits, you will be taxed on your contributions accordingly.