- If you leave covered employment you can leave your money with IPERS, where it keeps earning interest, roll it over, or take a refund. If you are vested, you can start a monthly benefit as early as 55.Member Handbook (2025), p. 11; p. 27, Leaving Funds With IPERS
- A refund pays back your contributions plus interest. If you are vested, it also pays a share of your employer's contributions plus interest: your years of service divided by 30, up to 100%. A refund ends your rights to benefits for that service.Member Handbook (2025), p. 18; p. 27, Applying for a Refund
- Refunds aren't automatic, so you have to apply. If you don't roll a refund over, IPERS withholds 20% for federal tax and, for Iowa residents, 3.8% for Iowa tax unless you are exempt.Member Handbook (2025), pp. 27-28
- Your contributions earn interest set by law at 1 percentage point above the one-year certificate of deposit rate.Member Handbook (2025), p. 59, Glossary (Accumulated Contributions)
Vesting
- You are vested after 7 years (28 quarters) of service, or if you reach 65 while working in covered employment, whichever comes first. Before July 1, 2012, vesting took 4 years or age 55. If you were vested before the change, you stay vested.Member Handbook (2025), p. 17, How to Become Vested
- You earn a quarter-year of service for each calendar quarter your employer reports covered wages for you, up to 4 quarters a year. In a nine-month school job, the summer quarter is credited when wages are reported in the spring and fall quarters.Member Handbook (2025), p. 16, IPERS Credit
IPERS's examples: Susan had 5 years on June 30, 2012, and was already vested; Nicholas had 3.5 years on June 30, 2012, and still needed 3.5 more years to vest. Member Handbook (2025), p. 17, Examples: Becoming Vested
Your share of your employer's money
If you're vested: years of service ÷ 30, up to 100%.
| Years of service | Employer share |
|---|---|
| 7 | 23.3% |
| 10 | 33.3% |
| 15 | 50% |
| 20 | 66.7% |
| 25 | 83.3% |
| 30 | 100% |
| 35 | 100% |
Before you take a refund
- When you leave covered employment you may take a refund of your accumulated contributions. If vested, you also get a share of your employers' accumulated contributions: years of service / 30, up to 100%. A refund forfeits all membership rights for the refunded period. Refunds are not automatic: you apply. Member Handbook (2025), p. 18, Access to Employer Contributions; p. 27, Applying for a Refund
- Taxable lump sums not rolled over: 20% mandatory federal withholding; Iowa residents 3.8% Iowa withholding unless exempt. Member Handbook (2025), p. 28, Lump-Sum Distributions
- If you take a refund and return to covered employment within 30 days of termination, IPERS will let you repay it and restore the service; if not repaid within 30 days of the notice, you must buy it back at retirement. Member Handbook (2025), p. 28
- If you leave money with IPERS, stop contributing for five years and have a balance under the IRS maximum, IPERS closes the account and mails you a check; you have 60 days to return it and restore the account. Member Handbook (2025), p. 27, Leaving Funds With IPERS
If you're vested, you can stop working now and start a monthly benefit from age 55. The calculator shows it if you tick "I've stopped working". A refunded period can be bought back later: see Buying service credit. For tax on a refund, see Taxes.
Common questions
What do I get if I leave IPERS before retiring?
Your own contributions plus interest. If you're vested, you also get a share of your employer's contributions plus interest: your years of service divided by 30, up to 100%. Or leave the money with IPERS and start a monthly benefit later.
When am I vested in IPERS?
After 7 years of service, or at 65 while working in covered employment. Members with 4 years before July 1, 2012 were already vested and stay vested.
Source: IPERS Member Handbook, Updated July 2025, pp. 11, 16, 17, 18, 27-28, 59. Also: Iowa Code §§ 97B.1A, 97B.53. Last reviewed .