Taking a refund
A member who terminates ATRS covered employment (and does not intend to return) may request a refund of member contributions plus interest. A refund cancels all contributory and noncontributory service, membership rights and beneficiary designations. Employer contributions are never refunded. No loans. Member Handbook pp. 14-15, Refunding Service Credit; p. 54, Glossary, Refund; General Info pamphlet p. 2, Refund of Contributions
Interest on contributions is set by ATRS's rules, compounded each year after your first year of contributions:
| Period | Interest |
|---|---|
| Before July 1, 1984 | 3% |
| July 1, 1984 to July 1, 2009 | 6% |
| July 1, 2010 to July 1, 2011 | 2% |
| July 1, 2012 to July 1, 2017 | 1% |
| From July 1, 2017 | 0.08% |
The rules list no rate for the gaps between these periods. 24 CAR § 10-402(c)(1) (regular interest compounded annually after the first year of contributions; computed each June 30 on the July 1 balance plus half the year's contributions, § 10-402(c)(2))
A refund can be repaid (as contributory service at actuarial cost) after returning to covered employment. Member Handbook p. 44, Appendix B, Repay Refund; Actuarial valuation 2025 p. C-7, item 16
Leaving your money in
You become vested once you have 5 years of actual service credit by working for an ATRS employer. You can also count reciprocal service credit toward those 5 years. Member Handbook p. 5, Vesting; p. 11, What does it mean to be a vested member of ATRS?; p. 12, Can I use purchased service credit ... to become vested? (No); p. 42, Appendix B
A vested inactive member who left before 60 can retire from the first of the month after turning 60 (or the month after ATRS receives the application, if later). Member Handbook p. 22, When are deferred members eligible for retirement?; p. 21; General Info pamphlet p. 2
The Board may offer the CASH program: inactive vested members eligible for deferred retirement may cancel membership for a one-time lump sum (offered typically each October). Member Handbook pp. 15-16, Cash and Savings Help Program
A T-DROP lump sum or CASH payment not rolled over may have significant tax consequences. Member Handbook pp. 16, 19 Taxes →
From the sources
- If you leave ATRS employment and don't plan to return, you can take a refund of your own contributions plus interest. A refund cancels all your service and beneficiary designations. Employer contributions are never refunded.Member Handbook pp. 14-15; General Info pamphlet p. 2
- Interest on refunds is small: 0.08% a year since July 2017, with none in the first year of contributions.24 CAR § 10-402(c)(1); Actuarial valuation 2025 p. C-5
- If you're vested, you can leave your money in and draw a benefit from 60 instead. The Board sometimes offers a CASH buyout to inactive vested members, a one-time payment in exchange for giving up the benefit.Member Handbook pp. 15-16, 22
Questions
Can I get my ATRS contributions back if I leave?
Yes, once you leave ATRS-covered employment and don't plan to return. You get your own contributions plus interest. Employer contributions are never refunded.
What do I give up with a refund?
All your service credit, membership rights and beneficiary designations. If you come back, you can buy the service back at its actuarial cost.
What if I'm vested and leave?
You can leave your money with ATRS and draw a monthly benefit from the first of the month after you turn 60.
Source: ATRS Member Handbook, 2026-2027 school year (current as of July 2026), pp. 5, 11, 12, 14-15, 15-16, 16, 19, 21, 22, 42, 44, 54. Also: General Info pamphlet p. 2; Actuarial valuation 2025 pp. C-5, C-7; ATRS rules, 24 CAR § 10-402. Last reviewed .