Members who terminate employment have the option to withdraw their accumulated contributions, either as a refund or as a rollover into an IRA (an individual retirement account or individual retirement annuity) or an employer plan (a tax-qualified plan, section 403(b) plan, or governmental section 457(b) plan) that will accept the rollover.
Accumulated contributions represent the total amount a member has paid into the retirement system throughout his or her career, plus credited interest; employer contributions are not included.
Withdrawal of accumulated contributions will result in a cancellation of service credit and termination of NHRS membership; vested members will forfeit all right to benefits.
Initiating a withdrawal
Group I (Employee and Teacher) members may initiate the withdrawal process by submitting an application and related documentation to NHRS no sooner than 30 days after termination of employment, and only if the member does not become a contributing Group I member again during that 30-day period.
Group II (Police and Fire) members may initiate the withdrawal process by submitting an application and related documentation to NHRS at any time after termination of employment.
Applying for a refund
The member must submit to NHRS a Terminated Member’s Application for Refund of Accumulated Contributions and either a copy of the member’s Social Security card or a completed IRS Form W-9. Employers are required to complete Section 4 of the application if the member terminated employment after January 1, 2012. Upon receipt of a properly completed application, NHRS is required by law to process the application within three months.
Applying for a direct rollover
In order to apply for a direct rollover, the member must submit to NHRS a Terminated Member’s Application for Refund of Accumulated Contributions form electing a direct rollover, a Terminated Member’s Request for Trustee-to-Trustee Transfer form, and either a copy of the member’s Social Security card or a completed IRS Form W-9. NHRS also requires an acceptance letter from the financial institution to where the accumulated contributions are to be transferred.
Click here to download the instructions and required documents for a refund or rollover.
For answers to frequently asked questions concerning withdrawals, see FAQ: Refund/Rollover.