Cashwell v. Department of State Treasurer

**Cashwell v. Department of State Treasurer: Tax-Free Pension Denied** This case involved a dispute over whether a state employee could receive a tax-free pension after previously withdrawing money from their retirement account. Cashwell had withdrawn contributions from the state retirement system earlier in their career, then later repaid that money and sought a pension that would be exempt from state taxes. The court ruled against Cashwell and sided with the Department of State Treasurer. The court found that while repaying withdrawn retirement contributions allows someone to get credit for those service years when calculating their pension benefits, it doesn't restore all the rights they had before the withdrawal. Specifically, the eligibility for tax-exempt pension status was permanently lost when the original withdrawal occurred. **What this means for workers:** If you're in a state retirement system and considering withdrawing your contributions early, be aware that you may permanently lose certain benefits even if you repay the money later. While you can restore some rights like service credit for pension calculations, other valuable benefits like tax-exempt status may be gone forever. Always carefully consider the long-term consequences before making early withdrawals from retirement accounts.