Leaving West Virginia teaching: refund or wait?

• If you leave, you can withdraw your own contributions plus interest, but not the employer's. Taking a refund ends all future retirement and disability benefits.West Virginia TRS Tier I brochure (2023), p. 2; West Virginia TRS Tier II brochure (2023), p. 1; W. Va. Code §18-7A-23(a)(1)
• Interest is 4% a year, compounded, and stops 5 years after your last contribution. You can't be under contract to teach when you apply.W. Va. Code §18-7A-3 ('Regular interest'), §18-7A-23(a)(1)
• If you come back after a refund, you can pay it back with interest once you've worked two more years, and get the earlier service back.W. Va. Code §18-7A-13(c)

The details

A member who leaves for any reason other than death, disability or retirement can withdraw his or her accumulated contributions (member contributions plus regular interest of 4% compounded annually) up to the end of the fiscal year before applying, less any loan; interest stops 5 years after the year of the last contribution. The member must no longer be under contract to teach, and (Tier I) no annuity may be immediately payable. Employer contributions stay with West Virginia TRS. A refund forfeits all future retirement and disability benefits. Tier I vested members (5 years) and Tier II vested members (10 years) may instead leave the money in for a deferred benefit. W. Va. Code §18-7A-23(a)(1); §18-7A-3 ('Regular interest', 'Accumulated contributions'); West Virginia TRS Tier I brochure (2023), p. 2, Termination of Employment; West Virginia TRS Tier II brochure (2023), p. 1, Termination of Employment; 162 CSR 4 § 7.2, p. 8

Loans

Active members who were West Virginia TRS members before July 1, 2005 may borrow up to 50% of their contributions, with total loans no more than $8,000; no refinancing. A balance at retirement must be paid off or offset by a lifetime actuarial reduction of the annuity. West Virginia TRS Tier I brochure (2023), p. 2, Loans; W. Va. Code §18-7A-34; 162 CSR 4 §§ 4.11.2, 8.1, pp. 5, 9

• $10,000 in contributions: you could borrow up to $5,000.
• $30,000 in contributions: you could borrow up to $8,000.
• A member who joined after June 30, 2005: $0 (no loans).

Our engine on CPRB's loan rule, assuming no loan balance now.

If you come back

More on bought and restored service is on service credit.

A former member who took a refund and returns may repay it with interest after 2 years of contributory service, restoring the earlier service. W. Va. Code §18-7A-13(c), §18-7A-17(i)

See also taxes and retirement ages.

Questions