Sick Leave, Workers' Compensation and Military Leave Credit Purchase Deadline - June 30, 2012
As the school year comes to a close, it is important to consider whether you are eligible to purchase credit for your unpaid sick leave, workers' compensation leave or military leave.
Unpaid Sick Leave and Workers' Compensation Leave
If you were on unpaid sick leave or workers' compensation leave during the 2009-2010 school year, the deadline for purchasing this credit is June 30, 2012. Unpaid sick leave may include time you were on maternity or paternity leave. You have two school years after the leave to purchase credit for the leave time.
This does not mean you have to wait. You can also purchase credit for unpaid sick leave or workers' compensation leave now for the 2011-2012 school year, or the 2010-2011 school year.
Your cost is the contributions you would have made to PSRS/PEERS during the full period of the leave. Contact your employer to arrange your payment to purchase credit for this leave. Your employer will then send your payment, along with the required employer contributions, to PSRS/PEERS. You must purchase credit for the total amount of time you were on unpaid sick leave or workers' compensation leave.
Tax-deferred (rollover) funds can be used to pay for this type of credit purchase. For more information on using tax-deferred rollovers to pay for purchases, contact us at (800) 392-6848.
PSRS/PEERS members who have been on military leave covered by the federal Uniformed Services Employment and Reemployment Rights Act (USERRA) may be eligible to purchase credit with PSRS/PEERS for that time.
USERRA-covered service includes service in the U.S. Armed Forces, the National Guard or other service categories designated by the president in times of war or emergency. If the leave was USERRA-covered service and the same employer re-employed you in accordance with the USERRA regulations, you may be eligible to purchase credit, provided you apply within five years of re-employment. You may purchase credit for up to five years of eligible service.
The cost of USERRA service is calculated by multiplying the PSRS/PEERS salary rate that would have been paid during the period of USERRA-covered service by the contribution rate in effect at the time of the service. In order to purchase the service, you would be required to pay the employee portion and your employer must pay the employer portion.
The period of USERRA-covered service counts toward PSRS/PEERS vesting and retirement eligibility, regardless of whether you choose to purchase credit for the leave period. If you do complete the purchase, the credit is also included in the total credit used to calculate your retirement benefit. Feel free to contact us at (800) 392-6848 for more information or for a cost estimate.