Refund of Contributions

Refunding Member Contributions

If you terminate employment, you can apply for a refund of your member contributions and interest as long as you are not employed by another affiliated employer for 30 calendar days. You will not receive a refund of the employer contributions. When you refund your member contributions and interest, you forfeit your service credit and all rights to any pension benefit from PERA, including disability or survivor benefits.

If you return to a PERA-affiliated employer, you will start from zero on service credit and contributions. However, you can recover the prior credit by repaying the withdrawn amount, along with interest calculated from the date the contributions were withdrawn to the date of repayment. All refund requests must be made by filling out a Member Request For Refund Rollover . Please note that your employer must also submit a termination form prior to processing a refund.

Refunding Member Contributions and Divorces

Because New Mexico is a community property state, you must submit copies of all required divorce decrees and marital property settlement agreements. All co-payee refund requests must be made by filling out a Co-Payee Refund Form.

Tax Treatment of Member Contributions

Refunds are subject to New Mexico state and federal taxes. You may also rollover your contributions to certain retirement accounts. Refund and rollover requests cannot be processed until PERA has received final payroll information from your employer and all contributions have posted to your account. Because of these requirements, a refund or rollover of contributions normally takes up to 60 working days to process.