Guidance Upon Termination or Retirement

person holding a phone with RIC 457 account on the screen
If you are separating from State employment due to termination or retirement, you can defer any amount of your final check, including your vacation payout (and sick leave payout, if applicable), into a RIC 457 account. Once you have left employment, you have several options for managing your RIC account.

Deferring Your Final Leave Payouts 

Both new and existing RIC participants can choose to defer final wages, unused vacation pay (up to IRS maximum limits) or unused sick pay (up to $2,000- retirees only) into a RIC 457 account. Contributions can be made on a pre-tax basis, post-tax (Roth) basis, or a combination of both. 

Important Workday Instructions: If you wish to defer a portion of your final paycheck, do not make this election in Workday. Instead, you must complete the RIC Special Deduction Request Form and submit it directly to the RIC Team 2 to 3 weeks before your final day of employment. 

Options for Your Existing RIC Account Balance 

Upon leaving State employment, you can manage your existing RIC accounts in one of three ways: 

  • Maintain Your Account: Leave your funds in RIC to continue tax-deferred growth. Please note that you must begin taking Required Minimum Distributions (RMDs) by the IRS-mandated age. 

  • Request a Distribution: Set up total, partial, or systematic (periodic) payments from your account. 

  • Roll Over Your Funds: Move your RIC balance into an IRA, 401(k), 401(a), 457, 403(b), or 403(a) plan. Before rolling your funds out of RIC, please compare your RIC accounts (including investment offerings, fees, and services) to the offerings, fees, services and possible restrictions of the receiving accounts. 

Effect of Re-employment 

If you are rehired or recalled to State employment: 

  • You are immediately eligible to resume contributing to RIC. 

  • If you previously closed your accounts, you would need to open a new ones. 

How to Initiate a Distribution 

Before requesting a payment, please review the Special Tax Notice. Distribution steps depend on your current provider: 

Active Providers 

If your funds are with one of our active providers, contact them directly to request your payment: 

Corebridge Financial 800-945-6763 
Empower 833-999-IOWA (4692) 
Horace Mann 877-602-1861 
Voya  800-555-1970 

Inactive Providers 

If your funds are invested with a provider not listed above, you must complete the RIC Distribution Form  and return it directly to the RIC Team. Please also contact your provider to verify if they require their own internal paperwork to finalize the transfer. 

Additional information about distributions when leaving employment may be found on the Distributions & Changes webpage.