411.23 - WITHDRAWAL OF CONTRIBUTIONS -- REPAYMENT -- AUTOMATIC REFUND.

        411.23  WITHDRAWAL OF CONTRIBUTIONS -- REPAYMENT --      AUTOMATIC REFUND.         1.  Commencing July 1, 1990, if an active member, in service on or      after that date, terminates service, other than by death or      disability, the member may elect to withdraw the member's      contributions under section 411.8, subsection 1, paragraphs "f"      and "h", together with interest thereon at a rate determined by      the board of trustees.  If a member withdraws contributions as      provided in this section, the member shall be deemed to have waived      all claims for other benefits from the system for the period of      membership service for which the contributions are withdrawn.         2.  A layoff for an indefinite period of time shall be deemed to      be a termination of service for the purposes of this section.  A      member who withdraws the member's contributions as provided in this      section following a layoff for an indefinite period of time and who      is subsequently recalled to service may repay the contributions.  The      contributions repaid by the member for such service shall be equal to      the amount of contributions withdrawn, plus interest computed based      upon the investment interest rate assumption established by the board      of trustees as of the time the contributions are repaid.  However,      the member must make the contributions within two years of the date      of the member's return to service.  The period of membership service      for which contributions are repaid shall be treated as though the      contributions were never withdrawn.         3. a.  Commencing July 1, 2006, a member's contributions shall      be refunded to the member by the system if the following conditions      are met:         (1)  The member was a member of the system for less than four      years.         (2)  The member terminated service four or more years prior to the      date of the refund.         (3)  The amount to be refunded does not exceed five thousand      dollars, or such other amount as may be established under section      401(a) of the Internal Revenue Code.         b.  In the event a refund is made in accordance with this      subsection without the member's consent, the system shall pay the      distribution in a direct rollover to an individual retirement plan      designated by the system unless the member elects to have such      distribution paid directly to an eligible retirement plan specified      by the member in a direct rollover in accordance with section 411.6B      or elects to receive the distribution directly.  The system may, by      rule, implement a de minimus exception to the automatic rollover      provision of this subsection, subject to the limitations of the      Internal Revenue Code and any applicable internal revenue service      regulations.  
         Section History: Recent Form
         90 Acts, ch 1240, § 84; 93 Acts, ch 44, § 19; 2006 Acts, ch 1092,      §18         Referred to in § 97A.17, 411.6, 411.6C, 411.38