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What You Need to Know: Refunds of Employee Contributions

Apr 16, 2026, 11:30 AM by MOSERS

Employees in MOSERS’ MSEP 2011 and Judicial Plan 2011 contribute toward their retirement while actively employed. When an employee leaves state employment, they may have the option to request a refund of those contributions.

Whether to take a refund or leave contributions with MOSERS is a personal decision that depends on several factors, such as whether the employee is vested and eligible for a future pension benefit or if they anticipate returning to state employment.

Requesting a Refund

Employees who request a refund may take it as a cash payment, a rollover to another eligible retirement plan, or a combination of both. Each option may have different tax implications.

Employees who are vested and receive a refund forfeit their future pension benefit. Any employee who takes a refund forfeits the ability to file a long-term disability (LTD) claim based on that employment.

Please note that employees are not eligible for a refund if:

  • They are receiving long-term disability (LTD) benefits.
  • Their future pension benefit is subject to a division of benefit order (DBO) due to a divorce.
  • They are eligible for normal retirement.
Important Reminders
  • When an employee separates from employment, MOSERS sends them a letter and detailed information explaining their options.
  • Refunds are not automatic. The employee must submit a refund application to MOSERS.
  • Refunds are paid within an administratively reasonable period, but no sooner than 90 days after termination of employment.

Employees with questions about their options are encouraged to speak with a MOSERS benefit counselor before making a decision. For more information, see Refund of Employee Contributions.

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