Sick Leave/Workers' Comp and Military Purchase Deadline is June 30April 01, 2013
With the school year half over, it is important to consider whether you are eligible to purchase service for your unpaid sick leave, workers' compensation leave or military leave.
Unpaid Sick Leave and Workers’ Compensation Leave
You may purchase retirement service that you lost because of unpaid sick leave or workers’ compensation leave as long as payment for the service is completed within two school years following the leave. This means if your leave occurred during the 2010-2011 school year, your deadline to complete the purchase is June 30, 2013. Unpaid sick leave may include time you were on maternity or paternity leave.
Your cost is the contributions you would have made to PSRS/PEERS during the full period of the leave. Contact your employer to determine if your leave is eligible and arrange your payment to purchase service for this leave. Tax-deferred (rollover) funds can be used to pay for this type of service purchase.
PSRS/PEERS members who have been on military leave covered by the federal Uniformed Services Employment and Reemployment Rights Act (USERRA) may purchase up to five years of service.
To qualify, you must return to employment after your military leave with the same employer and apply to purchase the leave within five years of re-employment. Your cost is based on the salary rate that you would have been paid and the contribution rate in effect during your leave. You pay the employee portion and your employer pays the employer portion.
Your USERRA-covered service counts toward PSRS/PEERS vesting and retirement eligibility, regardless of whether you purchase your service. Purchased service is also included in the total service used to calculate your retirement benefit. For more information on purchasing service, please contact us at (800) 392-6848.