Refund of Contributions

Option 1:  Keep your money at KPPA

Your account will continue to earn interest on the accumulated account balance and you can retire when you become eligible based on a combination of age and service credit.

If you change jobs and your new employer is a  participating agency with KPPA, you will contribute to your existing account and continue to accrue service credit.

Option 2: Withdraw your account

Members who are no longer employed by an agency participating with KPPA are eligible for a refund of member contributions plus any accumulated interest if they have terminated employment. Members do not receive a refund of any employer contributions. 

Refunds from your KPPA account may be paid directly to you or can be rolled over to another qualified retirement plan. If you elect to receive a direct payment, KPPA is generally required to withhold 20% for federal income taxes. The amount withheld is not a penalty tax and will apply toward your federal tax liability for the year in which the refund is issued. Additional taxes due to age or other factors may apply if you choose to receive a direct payment of your refund. 

If you go to work for a participating agency at a later date, you may be eligible to purchase your refunded service. The purchase will not reestablish your original participation date which determines the benefit tier you are in: you only receive credit for the months of service you purchase.

By taking a refund, members forfeit eligibility for future benefits including health insurance and the $5,000 death benefit.

Option 3: Retire if you are eligible

Retirement eligibility is dependent upon your age and years of service.