Appendix B
Current Law Group Purchase of Service Credit Provisions
Since 1998, the Legislature has enacted several purchase of service credit provisions which apply to groups of individuals. These provisions conflict with prior Legislative Commission on Pensions and Retirement policy or practice by not requiring legislative review of each case, and by a relaxing of public service related, Minnesota connection, and similar policy principles. It is unclear at this time whether the Commission views this situation as an evolution in its policy, or as a temporary relaxation of requirements to meet short-term employment policy or other public policy goals. Most of the provisions are temporary and are set for expiration or repeal.
|
Type of |
Plan(s) Involved |
Qualifications For Purchase |
Limitations on Purchase |
Purchase Payment Amount |
Member/Employer Allocation of Payment |
Year Enacted |
Repealer Date |
Other Comments |
|
Military Service Credit Purchase |
TRA |
Three years of service (vested member) |
Applies to military service before becoming a plan member, of if member failed to exercise right to purchase under leave of absence provision. Purchase period is for period of initial induction or enlistment, not including any voluntary extension. |
Full actuarial value service credit purchase amount. |
Member responsibility unless employer agrees to pay a portion. |
1999, 2000 |
May 16, 2002, or May 16, 2003, depending upon plan an enactment date |
Enacted for teacher plans in 1999, extended to MSRS and PERA plans in 2000. |
|
Out-of-State Teaching |
TRA |
Three years of service (vested member) |
Applies to out-of-state teaching at educational institution in another state, governmental subdivision, or federal government. Purchase can not exceed 10 years of service. |
Full actuarial value service credit purchase amount. |
Member responsibility unless employer agrees to pay a portion. |
1999 |
May 16, 2002 |
Revised in 2001 to include out-of-country teaching service, and teaching service where the employer is a federally-recognized American Indian tribe. |
|
Maternity Leave or Maternity Break-In-Service |
TRA |
Three years of service (vested member) |
Purchase can not exceed five years of service. Applies to any maternity leave for which service credit was not received, or for any maternity break in teaching service. |
Full actuarial value service credit purchase amount. |
Member responsibility unless employer agrees to pay a portion. |
1999 |
May 16, 2002 |
|
|
Private, Parochial School Teaching Service Credit |
TRA |
Three years of service (vested member) |
Purchase can not exceed 10 years of service. |
Full actuarial value service credit purchase amount. |
Member responsibility unless employer agrees to pay a portion. |
1999 |
May 16, 2002 |
Provision revised in 2000 to also include nonprofit community-based corporation service; revised in 2001 to include developmental achievement center service. |
|
Peace Corps, |
TRA |
Three years of service (vested member) |
Purchase can not exceed 10 years of service. |
Full actuarial value service credit purchase amount. |
Member responsibility unless employer agrees to pay a portion. |
1999 |
May 16, 2002 |
|
|
Charter School Teaching |
TRA |
Three years of service (vested member) |
Purchase can not exceed 10 years of service. |
Full actuarial value service credit purchase amount. |
Member responsibility unless employer agrees to pay a portion. |
1999 |
May 16, 2002 |
|
|
Type of |
Plan(s) Involved |
Qualifications For Purchase |
Limitations on Purchase |
Purchase Payment Amount |
Member/Employer Allocation of Payment |
Year Enacted |
Repealer Date |
Other Comments |
|
Previously Uncredited Part-Time Teaching Service |
TRA |
Three years of service (vested member) |
Applies to part-time teaching service in the applicable school district that was not previously eligible for coverage. No limit on length of service credit purchase. |
Full actuarial value service credit purchase amount. |
Member responsibility unless employer agrees to pay a portion. |
1999 |
May 16, 2002 |
|
|
Uncredited University of Minnesota Teaching Service |
TRA |
Three years of service (vested member) |
Applies to periods of University of Minnesota teaching service not covered by University of Minnesota plans. Permits purchase of up to 10 years of service. |
Full actuarial value service credit purchase amount. |
Member responsibility unless employer agrees to pay a portion. |
2001 |
No repealer date |
|
|
Parental/Family Leave or Break-in-Service |
TRA |
Three years of service |
Applies to parental or family leave or break-in-service; including adoption of child or care for relatives and in-laws, after which the employee returns to the same employer or to an employer covered by the same pension plan. |
Full actuarial value service credit purchase amount. |
Member responsibility unless employer agrees to pay a portion. |
2001 |
May 16, 2003 |