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Creditable
Service
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GENERAL
REQUIREMENTS
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How is creditable service
earned?
In general, you earn creditable
service toward your retirement allowance for
the period during which you contribute either
5%, 7%, 8%, 9%, 11%, or 12% of your salary
to the retirement system.
May I buy back creditable
service?
- Re-establishing Creditable
Service
If you terminate your public service and take
a refund of your accumulated total deductions
and later return to public service, you may
re-establish your prior creditable service
by buying it back. But, you will begin as
a new member, making contributions at the
current rate.
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SEASONAL
EMPLOYMENT
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How is creditable
service calculated for seasonal
employees?
- Full-Time,
At Least Seven Months
Employees whose work is found
by their retirement board to be
seasonal in nature and who work
full-time for at least seven months
are entitled to one year of creditable
service.
- Full-time,
Less Than Seven Months
Retirement boards will, on a board
by board basis, determine how
much full-time seasonal service
will constitute the equivalent
of one year of service for those
who work less than seven months
a year.
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TRANSFER
OR RE-ESTABLISHMENT OF MEMBERSHIP
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What creditable
service requirements pertain to
the transfer or re-establishment
of membership and retirement benefit
eligibility?
- Two-Year Creditable
Service Requirement
No member who is reinstated or
re-enters or who transfers or
re-establishes his membership
is eligible to receive a superannuation,
ordinary disability, or termination
retirement allowance until the
member has been in active service
for at least two consecutive years
following the start of the new
employment.
- Exceptions
The two-year requirement will
not apply in the case of any member
who is reinstated to active service,
re-enters active service, or who
transfers his membership from
another retirement system, if
the member was eligible to receive
a termination retirement allowance
at the time of his last separation
from service, or if the member
has rendered service or attained
an age so that he would have been
eligible to retire if he had continued
to be a member of the retirement
system from which membership was
transferred.
Is the two-year
requirement waived when a transfer
involves no break in service?
- Waiver of
Requirement
This requirement will not apply
once the member has become eligible
to retire from the retirement
system from which his/her account
was transferred by virtue of attaining
an age or earning sufficient creditable
service.
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WORKERS'
COMPENSATION
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How is my
creditable service affected by an
absence caused by a work-related
injury or hazard?
- Benefits
Full creditable service will be
awarded to any member-in-service
for a period of absence that is
attributable to an injury sustained
or a hazard undergone during employment
that results in total incapacitation
and for which Workers Compensation
benefits are paid. The member
receives the creditable service
without having to make contributions
to the retirement system. Workers
Compensation benefits received
during such a period are not considered
to be regular compensation and
cannot be used to calculate a
retirement allowance.
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MILITARY
SERVICE
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Is
creditable service earned during
a leave of absence to serve in the
Armed Forces of the United States?
- Credit for
Military Service Earned During
Leave of Absence
Employees who leave public employment
for the purpose of serving in
the armed forces, and who are
honorably discharged and return
to public employment within two
years of their discharge from
military service, are entitled
to have periods of service in
the armed forces of the United
States counted as creditable service.
Does the law
limit how much credit such returning
employees are eligible to receive?
- Creditable
Service Limit
Any military service in excess
of four years will not be counted
as creditable service, unless
such service was involuntary.
Could I receive
credit for military service rendered
prior to becoming a public employee?
- Credit for
Military Service Earned Prior
to Membership Service
Many retirement systems have accepted
local option legislation which
would allow veterans to purchase
up to four years of creditable
service corresponding to their
military service.
Please see
the definition of veteran under
the section of this guide entitled
Retirement Allowance
.
For each year
of military service sought, an
eligible member is required to
pay ten percent of the regular
annual compensation that he/she
was being paid upon entering the
retirement system.
Members may
not receive credit for military
service for which they have already
received credit under the leave
of absence provision discussed
above.
Members who
are veterans should contact their
local retirement board to determine
if their system has accepted this
local option legislation and to
determine if they are eligible.
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