If you end employment with the state, you can request a refund of your retirement deductions. The refund includes 6% interest to June 30, 2011, and 4% interest after that. The interest is compounded daily. The refund does not include your employer's contributions to your retirement plan.

Taking a refund forfeits your rights to retirement, survivor, and disability benefits.

The refund is subject to state and federal taxes. In addition, if you are under age 59 1/2, you will be subject to a 10 percent tax penalty which you pay when you file your income tax returns. By law, we are required to withhold 20 percent to apply to your federal tax liabilities.

To apply for a refund: Contact MSRS to request a refund application. The refund application cannot be signed and dated until the day after you terminate employment, and it must be signed in the presence of a notary. MSRS has notaries on staff if you wish to come to our office and file your refund application. It generally takes about 30 days to process your refund.