§88-46.5 Withdrawal of contributions and transfer to the noncontributory plan. (a) Notwithstanding any other provisions of this chapter to the contrary, a member who is in a position covered by Title II of the Social Security Act may apply to the system for a one-time withdrawal of the member's contributions in the event of economic hardship.

(b) Upon approval of the member's election, all rights as a class A or class H member shall be extinguished and the member shall:

(1) Become a class C member;

(2) Be refunded the member's contributions; and

(3) Not be required to make any further contributions.

(1) Prescribe the verification needed for the withdrawal election authorized under this section;

(2) Provide the member with information explaining the effects of the election;

(3) Review the facts and make a case-by-case determination; and

(4) Notify the member in writing of the approval of the withdrawal or the disapproval and the reasons for the disapproval.

(d) For the purposes of this section, "economic hardship" means a financial hardship resulting from any of the following conditions that cannot be satisfied by other resources, including:

(1) A sudden and unexpected illness or accident of the member or the member's dependent;

(2) The loss of the member's property due to a casualty; or

(3) Any other extraordinary and unforeseeable circumstance arising as a result of events beyond the member's control. [L 2000, c 265, §1; am L 2004, c 179, §4]