38-740. Return of contributions

A. A member whose membership commenced before July 1, 2011 and who leaves employment other than by retirement or death may elect to receive a return of the contributions as follows:

1. If the member has less than five years of credited service, ASRS shall disburse all of the member's contributions.

2. If a member has five or more years of credited service, ASRS shall disburse the member's contributions and an amount equal to a percentage of the employer contributions paid on behalf of the member.  This amount excludes payments made by an employer pursuant to section 38-738, subsection B, paragraph 3, unless the member has made the payment required by section 38-738, subsection B, paragraph 1. The percentage of employer contributions paid on behalf of the member shall be as follows:

(a) 5.0 to 5.9 years of credited service, twenty-five percent.

(b) 6.0 to 6.9 years of credited service, forty percent.

(c) 7.0 to 7.9 years of credited service, fifty-five percent.

(d) 8.0 to 8.9 years of credited service, seventy percent.

(e) 9.0 to 9.9 years of credited service, eighty-five percent.

(f) 10.0 or more years of credited service, one hundred percent.

3. Interest on the returned contributions as determined by the board.

B. A member whose membership commenced on or after July 1, 2011 and who leaves employment other than by retirement or death may elect to receive a return of all of the member's contributions with interest as determined by the board.

C. Notwithstanding subsection B of this section, if a member has five or more years of credited service and the member is terminated solely because of an employer reduction in force by reason of a lack of monies or elimination of the member's position, the member is entitled to receive the amounts prescribed in subsection A of this section.

D. Withdrawal of contributions with interest constitutes a withdrawal from membership in ASRS and results in a forfeiture of all other benefits under ASRS.

E. If ASRS has disbursed an overpayment pursuant to section 38-765 or 38-797.08, ASRS shall withhold the overpayment amount plus any required income tax withholding from the return of contributions.

F. Notwithstanding any other provision of this article, a member who has not received a return of contributions pursuant to this section may combine any two or more periods of service for purposes of determining the member's benefits.

G. If ASRS disburses more than the amount due to a member or an alternate payee pursuant to this section, the person who received the overpayment shall repay the amount of the overpayment together with interest at the interest rate earned on ASRS investments as reported on a quarterly basis, but not less than the valuation rate established by the board, from the time of overpayment to the settlement of the debt.