If you leave FRS employment before you're vested, you'll want to know what to consider and how it will affect your payout options.
What to Consider
If you're in the Investment Plan...
- You need to have at least one year of FRS service to be vested in your Investment Plan benefit.
- If you leave prior to attaining at least one year of service, any account balance in your account after you leave will be frozen for five years following the date you leave.
- If you don't return to an FRS employer within the five-year period, your benefit will be forfeited — even if you return to work for an FRS employer later in your career.
If you're in the Pension Plan...
- You need to have at least six years of FRS service to be vested in your Pension Plan benefit.
- Any benefit you've accumulated remains in the Pension Plan indefinitely.
- If you leave prior to vesting and return to work for an FRS employer at any time in the future you will be able to add to the service you have already earned. If you proceed to meet the vesting rules in place at that time, you'll be entitled to a Pension Plan benefit.
- If you don't return to an FRS employer, and you are vested in the Pension Plan, you may wish to consider early retirement rather than waiting until you attain normal retirement age.
Payout Options
You are NOT eligible for a payout of any benefit because you are leaving FRS employment before you are vested.
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