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Procedures Manual

11.3: Deferred Retirement

Last Revised: Apr 1, 2008


Purpose

This section should be used when a member has 5 or more years of eligibility credit, withdraws from active membership, and leaves his or her accumulated contributions in TRSL. The member is eligible for deferred retirement upon attaining age 60; however, both the member and employer should be certain that these eligibility requirements have been met prior to the termination of employment. The effective deferred retirement date is the first of the month following the member’s 60th birthday.
Sections

Action to be Taken

Additional Notes

Action to be Taken

  1. The member must submit written notification of his intention to leave accumulated contributions in TRSL in order to receive a deferred retirement benefit when eligible.
     
  2. The member must furnish copies of the following (with Social Security number on each copy):
    • Social Security cards (as issued by the Social Security Administration) for the member and the spouse.
       
    • Documents verifying the dates of birth for the member and spouse. (Refer to Date-of-Birth Verification Requirements found on the reverse side of the Service Retirement Application Checklist).
       
    • Documents verifying the date of birth for the option beneficiary, unless Option 1 will be chosen.
       
    • Judgments of separation and/or judgments of divorce, including any community property settlements.
       
    • Certified copy of spouse’s death certificate, if applicable.
       
  3. A Beneficiary Designation (Form 3) should be completed if the member chooses to change the beneficiary on the active member record as shown on the last member statement. It is the member’s responsibility to keep the beneficiary designation current.
     
  4. All employers must also certify all questionable years and sick leave using the online update processes.
Additional Notes
  1. Any fractional part of a member’s total service credit (excluding unused leave credit) shall be rounded to the closest one-tenth of a year.
     
  2. Members who have requested deferred retirement must return to TRSL active membership status upon becoming re-employed.
     
  3. The member must inform TRSL of address changes to facilitate the forwarding of an Application for Service Retirement, ILSB, or DROP (Form 11) 90 days prior to attaining the age of 60.
     
  4. Deferred retirement benefits are due and payable the first day of the month following the member’s 60th birthday.
     
  5. In the event of a member’s death prior to attaining the age of 60, the beneficiary(ies) will receive a lump-sum distribution of the member’s contributions to TRSL.
     
  6. For inactive members who were eligible to retire when they terminated employment, the effective date of retirement will be the date the Application for Service Retirement, ILSB, or DROP (Form 11) is received by TRSL or a future date that the member elects on the application. (Members with at least 25 years of service credit may choose to wait until age 55 to receive the 2.5% retirement factor.)
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