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Indiana State Budget Agency

SBA > Retirement Medical Benefits > Frequently Asked Questions about the Retirement Medical Benefits Plan > Interruption or Change in Employment Interruption or Change in Employment

Q. What if I leave state employment before I retire?

A. Funds deposited in the Reimbursement Account will revert back to the state at termination from employment for reasons other than normal unreduced retirement.

(See Section 2.5 of the Plan document)

Q. What happens if I do not have an interruption in state service and move from one participating Employer to another?

A. A separation from service from one participating Employer and immediate employment with another participating Employer is not considered a termination of employment, and under such circumstances, the employee remains a Participant in this Plan the as though no separation from service occurred.

(See Section 2.5)

Q. What happens if I have an interruption in state service 2 years from now after accumulating several thousand dollars in my account? What if I return 3 years later, and eventually receive an unreduced retirement benefit and have more than 15 years of state service (in total)?

A. The funds in your account – the annual contributions – will revert to the state to be used to fund other participants. A former Participant who terminates his employment and is not immediately hired by another participating Employer will be treated as a new employee upon his rehire.  Annual contributions will begin again (from zero) when you return, and you will be eligible for the bonus contribution ($1,000 x eligible years of service) if you retire prior to June 30, 2017.

(See Section 2.7)