Withdraw Your ERS Retirement for Former Employees

You can leave your account with ERS. If you are vested to receive an annuity when eligible, this amount will not increase like Social Security. However, the account balance of your ERS retirement account will continue to accrue interest.

Before you take a withdrawal...

You don't have to withdraw your money from your retirement account when you leave state employment.

Consider the following before you decide:

  • Your money earns 2% interest each year.
  • Federal law requires 20% taken from your retirement account withdrawal if paid directly to you.
  • You must withdraw all of your money.
  • You lose your ERS membership and service credit
  • You can buy your withdrawn service credit back one month at a time if you return to state service (with a 10% interest for each fiscal year) or work for an employer under the Proportionate Retirement Program (PRP)
  • If you do return to state employment, your retirement eligibility rules may not be the same as they were before you left.
  • Direct deposit isn’t an option. ERS will mail your check to the address you provide.

You must be off state payroll for 30 days before you can receive the withdrawal of your retirement money. You’ll receive letters or emails telling you when to expect your check. Your payment can be paid to you, paid in a direct rollover, or split between you and a direct rollover.

Withdrawal Process

To start the process after you stop working for the State:

  • Sign into your account,,
  • Select “Withdraw My Retirement Account,”
  • Follow the four easy steps to receive the Retirement Account Withdrawal Disclaimer form.
  • View the remaining steps, estimate when you will receive your payment, and track the status of it online. 

Direct Rollover

When you leave state employment, you can move your money to another retirement account. If you do a direct rollover:

  • Your withdrawal won’t be taxed in the current year and no income tax will be withheld.
  • Your withdrawal check will be made out directly to your IRA or, if you choose, to another employer plan that accepts your rollover. Your withdrawal can’t be rolled over to a Roth IRA, SIMPLE IRA, or education IRA, because these IRAs are not considered Traditional IRAs.
  • Your money will be taxed later when you take it out of the IRA or the employer plan.
  • If you decide to roll it over, you must deposit the rollover within 60 days from the date on the check. 

The nontaxable portion of your withdrawal is not an eligible rollover distribution and can’t be rolled over to another retirement account.