- You are vested after five years of Kentucky service. A vested member who leaves can draw a benefit once eligible.TRS 4 SPD p. 10, Becoming vested
- After leaving, you can take a refund of your contributions plus interest 60 days after your last day of work. A refund cancels your service. Employer and health-insurance contributions are not refunded (TRS 4 vested members also get the employer supplemental contributions).KRS 161.470(6); TRS 4 SPD p. 10
- If you are already eligible to retire, the law generally does not allow a refund.KRS 161.470(6); TRS 4 SPD p. 10
- With less than five years, being absent more than three years in a row ends membership; you can still apply for a refund.KRS 161.470(5)(d)
Vesting
An account is vested once five years of creditable Kentucky service are completed. A member with less than five years who is absent from service for more than three consecutive years has membership terminated (funds go to the guarantee fund; refund available any time; service reinstated if the member returns). TRS 4 SPD p. 10, Becoming vested; Retirement 101 Notes (2014) p. 1; KRS 161.470(5)(d)
Drawing your pension later
Once vested you can leave your account in place and retire when you meet the age rules for your account type: TRS 1 to TRS 3 at 60 (or 55 with a cut; 55 with 10 years for TRS 3), and TRS 4 at 65 with 5 years or 60 with 10. See retiring early.
A refund
No withdrawal while working in a TRS-covered position. Refund available 60 days after the last day of employment. A refund cancels membership and service. Members eligible for an immediate service retirement cannot refund (narrow exceptions). Health insurance contributions are not refundable. Refunds paid directly to the member have at least 20% federal withholding and may face an IRS early-withdrawal penalty under 59 1/2. KRS 161.470(6); TRS 4 SPD p. 10, Refund of account
TRS 4 vested refund also includes employer contributions to the supplemental benefit and interest on them. TRS 4 SPD p. 10; KRS 161.470(6)
Come back later? A withdrawn account can be reinstated after at least one year back in a TRS-covered position by repaying the amount withdrawn plus interest. TRS 4 SPD p. 11; KRS 161.470(3)
Disability
Generally requires 5 years of Kentucky service (less if the injury is duty-related) and applying within one year of last contributing service; members with 27 or more years can take service retirement only. During the entitlement period the benefit is 60% of final average salary (5+ years). Separate application. Check with TRS of Kentucky TRS 1-3 SPD (2011) pp. 42-44, Disability Retirement; TRS 4 SPD p. 11
For taxes on a refund or rollover, see taxes.
Questions
When am I vested in TRS of Kentucky?
After 5 years of Kentucky service. A vested member who leaves can draw a benefit once old enough.
Can I get my TRS of Kentucky contributions back?
No withdrawal while working in a TRS-covered position. Refund available 60 days after the last day of employment. A refund cancels membership and service. Members eligible for an immediate service retirement cannot refund (narrow exceptions). Health insurance contributions are not refundable. Refunds paid directly to the member have at least 20% federal withholding and may face an IRS early-withdrawal penalty under 59 1/2.
What does a refund give up?
Your service credit and your future pension. You can reinstate it later only by returning to a TRS-covered job for a year and repaying the refund with interest.
Source: TRS Summary Plan Descriptions and Service Retirement bulletins, TRS 4 SPD January 2022; TRS 1-3 SPD 2011; Service Retirement bulletins March 2023, TRS 4 SPD pp. 10, 11; TRS 1-3 SPD (2011) pp. 42-44. Also: Retirement 101 Notes (2014) p. 1; KRS 161.470. Last reviewed .