MEMBERSHIP STATUS

Membership status is defined in two ways in the retirement law: “member-in-service,” and “member-inactive.”

• Member-in-Service
  Any member who is regularly employed in the performance of his/her duties is considered a member-in-service. Member-in-service status will continue until death or until separation becomes effective by reason of retirement, resignation, failure of re-election or re-appointment, or removal or discharge from office or position.
  
  
• Member-Inactive
  Members-in-service become members-inactive when they:
  •   retire and receive a retirement allowance; or
  
  •   when their employment has been terminated and they are entitled to any present or potential retirement allowance or a return of accumulated deductions; or
  
  •   when they are on an authorized leave of absence without pay for a reason other than retirement board duties which extends for more than a year; or
  
  •   upon the expiration of their term if they are elected officials who are not re-elected.

DUAL MEMBERSHIP

What if I am employed by more than one governmental unit?

If you are concurrently employed by two or more governmental units which have established contributory retirement systems subject to the provisions of Chapter 32, you may, subject to the boards’ rules, become a member of each system, with appropriate deductions being taken from each payroll, and you will be eligible to receive retirement allowances and other benefits from each system.

Will my total benefit be twice as large as that received by someone employed by one governmental unit?

• Total Benefit Received from Dual Membership
  Upon your retirement, the total benefit received from such dual membership cannot exceed the amount you would have received had your total regular compensation been received from a single governmental unit. You cannot be credited with more than one year of creditable service during any one calendar year.
  
  
• Example
  For example, an employee who has membership in two systems, with six months of service in one system and nine months of service in another system, will be credited with 12 months of service, not 15. The boards of the systems involved will determine how much creditable service shall be allowed by each board, subject to the approval of PERAC.

Can I retire from one governmental unit but continue to be employed by another governmental unit?

• Dual Membership: Retirement from One System
  You may terminate your service and apply for a retirement allowance in one system and continue in a second. However, no pension or retirement allowance shall become effective on account of your service in the first system until the date that you terminate service in the second.
  
  
• Dual Membership: Disability Retirement from One System
  If you are eligible to receive a disability retirement from one system, your disability pension or retirement allowance will not become effective until you terminate your service from the second system. Until such termination, you will be required to waive the receipt of your disability benefit.

TRANSFER OF SERVICE AND DEDUCTIONS

What effect does transferring have on creditable service and accumulated total deductions?

• Career Changes
  Career changes of public employees may entail a transfer from a job presently held to a new job in a different governmental unit with a different retirement system. The accumulated total deductions and corresponding creditable service of members involved in such a change must be transferred from the former retirement system to the new retirement system.
  
  
• Retirement After a Transfer of Service
  When members who have transferred receive a retirement allowance, the entire amount will be paid by the retirement system from which they retire. The retirement system of which he/she was formerly a member will reimburse the retirement system for the portion of the retirement allowance that is based on his/her previous service.     

STATEMENTS OF SERVICE

Must I furnish my retirement board with information about any past public sector employment?

• Filing Requirements
  Within one year of becoming a member of a public employee retirement system, (whether you have been restored or reinstated to public service or you have transferred or re-established membership), you must file a detailed statement of all the public service that you have rendered for which you wish to claim credit.

Will my retirement board verify my prior service?

• Retirement Board Review
  Within six months of receipt of your statement of service, your retirement board will review and verify all the service that you claim.
  
  
• Creditable Service
  If the retirement board determines that you are entitled to creditable service for which you haven’t yet made make-up payments, the retirement board will inform you in writing of your right to purchase all or part of such service. If you do elect to purchase service, your retirement board may either allow you to make a lump sum payment or establish an installment plan.
  
  
• Board Review at Retirement
  At the time you retire, your retirement board is charged with the responsibility of again reviewing your statement of service and again informing you in writing of your right to purchase service.