TRB: Leaving the System

{Frequently Asked Questions (FAQs)}

I am leaving the system with less than 10 years of Connecticut Service.  I realize that under current laws and regulations I am not vested, but do I need to withdraw my funds immediately?

As an inactive member, you are not required to withdraw your funds immediately.  Your account will continue to accrue interest at the same rate of interest as active members for up to 10 years. You will also continue to receive a Member Annual Statement from this office. Be sure to keep us informed of your current home mailing address in writing. When you have been inactive for 10 years, we stop crediting interest to your account and we stop sending Member Annual Statements.  

During the 2015-16 Legislative Session, Public Act 16-91 was enacted which made changes to the Connecticut Teachers' Retirement System concerning non-vested inactive members. This legislation became effective July 1, 2016, and requires the Connecticut Teachers' Retirement System to cease crediting interest to these accounts after ten years of inactivity. You may want to consider withdrawing your funds and transferring them to another qualified plan at that time, though it is not legally required for you to do so. 

Your account is subject to the Internal Revenue Service Required Minimum Distribution provision, and so you must close your account when you reach age 70 .

I am leaving the system with more than 10 years of Connecticut Service.  I realize that under current laws and regulations I am vested, do I need to withdraw my funds?

As a vested member, your account will continue to accrue interest at the same rate of interest as active members for up to 25 years from the date of your last membership job or your retirement date, or age 70 , whichever comes first.  The different types of retirement and the eligibility requirements are on the Active Teacher Summary of Benefits page. You will also continue to receive a Member Annual Statement from this office.  Be sure to keep us informed of your current home mailing address in writing. When you have been inactive for 25 years, we stop crediting interest to your account and we stop sending Member Annual Statements.  

Your account is subject to the Internal Revenue Service Required Minimum Distribution provision, and so you must close your account when you reach age 70 .

By withdrawing your funds, you forfeit your right to any retirement benefit that you may be eligible for from this system. With a minimum of 10 years of Connecticut teaching service, be sure to understand the amount of the potential benefit you will be forfeiting by withdrawing your funds. Information on the Vested Deferred Retirement benefit is available on the Active Teacher Summary of Benefits page.

 



Content Last Modified on 4/4/2017 12:14:59 PM