Members own all contributions and earnings in their Investment Plan account after completing 1 year of service. Members who leave FRS employment sooner own only their employee contributions and any earnings on those contributions. Employees always own amounts they contribute to their own account. This rapid vesting schedule makes the Investment Plan a good choice for employees who need a more portable benefit or who expect to retire before they qualify for a benefit under the Pension Plan.
Any benefit transferred from the Pension Plan to the Investment Plan is subject to the Pension Plan’s vesting schedule. Members are always fully vested in all of their employee contributions made in and after the month in which their transfer was effective. The benefit transferred from the Pension Plan to the Investment Plan is not segregated as employee or employer contributions (the member’s records will indicate zero employee and employer contributions). The member will begin to accrue employee and employer contributions after the transfer to the Investment Plan. Unvested Account Balances
Any unvested portion of a member’s Investment Plan account balance will be transferred to a suspense account within 120 days of the member’s termination date. While in the suspense account, the unvested balance will earn the same rate of return as the FRS Core Plus Bond Fund (310).
If, at any time, the member requests a payout of the vested portion of their Investment Plan account balance, the unvested balance and associated FRS service will be forfeited.
If the member is reemployed in an FRS-covered position within five years of termination and has not taken a distribution of their vested account balance, including a refund of employee contributions, the amount held in the suspense account, and interest thereon, will be reinstated to the member’s Investment Plan account.
If the member is not reemployed in an FRS-covered position within five years of termination, the unvested balance and associated FRS service will be forfeited.